Accounting treatment for a partnership firm is similar to that of a sole proprietorship business except the following aspects:

(A) Distribution of Profit and Loss among the partners

(B) Dissolution of Partnership Firm

(C) Raising Capital through public offering

(D) Adjustments for Wrong Appropriation of Profits in the Past

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is option 3- (A), (B) and (D) only.

Except (C) Raising Capital through public offering, all are true. Only a company can raise capital through public offering.

Accounting treatment for partnership firm is similar to that of a sole proprietorship business with the exception of the following aspects:

• Maintenance of Partners’ Capital Accounts;

• Distribution of Profit and Loss among the partners;

• Adjustments for Wrong Appropriation of Profits in the Past;

• Reconstitution of the Partnership Firm; and

• Dissolution of Partnership Firm.