In the case of a dissolution of a firm, accumulated losses are transferred to:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → Capital Accounts in Profit Sharing Ratio
Accumulated losses (e.g., debit balance of P&L) are past losses and are closed by debiting partners’ capital accounts in their profit-sharing ratio. The Realisation A/c is used for assets and external liabilities, not for accumulated revenue losses.