Practicing Success
Practicing Success
CUET Preparation Today
| On the retirement of Shiva from the firm of Shiva, Ram and Shyam, the Balance Sheet had a Debit balance of 12,000 in the Profit and Loss account. Which of the following will be the correct treatment of this negative balance of P and L a/c for calculating the amount payable to Shiva? |
To the Credit of the Capital account of Shiva, Ram and Shyam equally. To the Debit of the Capital account of Shiva, Ram and Shyam equally. To the Debit of the Capital account of Ram and Shyam equally. To the Credit of the Capital account of Ram and Shyam. |
| To the Debit of the Capital account of Shiva, Ram and Shyam equally. |
| Debit balance in profit and loss account shows a loss and all the accumulated losses are transferred to the debit side of the Capital account in an Old ratio during the retirement of a partner. |
