1.

What are the accumulated profit and accumulated losses?

Answer»

The profit accumulated over the years and have not been credited to partners’ capital A/c are known as accumulated Profit or undistributed profit, e.g. the  General Reserve, Profit and Loss A/c (credit balance).

The losses which have not yet been written off to the debit of Partners’ Capital A/c are known as accumulated Losses, e.g. the Profit and Loss A/c appearing on the assets side of Balance Sheet, etc.



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