CUET Preparation Today
On reconstitution of a partnership firm, recording of an unrecorded liability will ultimately result in which of the following? |
Gain to the existing partners Loss to the existing partners Neither gain nor loss to the existing partners Gain to new partner |
Loss to the existing partners |
The correct answer is option 2- Loss to the existing partners. On reconstitution of a partnership firm, recording of an unrecorded liability will ultimately result in loss to the existing partners. On recording unrecorded liability, The journal entry will be- On reconstitution of a partnership firm, recording of an unrecorded liability will result in loss to the partnership firm. This loss will distributed in the existing partners so ultimately it is the loss for the existing partners. |
