Question

The journal for distribution of losses is -

• A. Reserves A/c Dr. To Partner's Capital A/c
• B. Partner's Capital A/c Dr. To Profit and Losses A/c
• C. Both : Reserves A/c Dr. To Partner's Capital A/c Partner's Capital A/c Dr. To Profit and Losses A/c
• D. None of these

Answer 1

The correct option is B

Partner's Capital A/c Dr.

To Profit and Losses A/c

The journal for distribution of losses is -

Losses : Partner's Capital A/c Dr.

To Losses A/c