1.

Write the word/term or phrase which can substitute the following statement.Profit and Loss Account appearing on the asset side of a balance sheet.

Answer»

Profit & Loss Account (Debit balance) or undistributed losses

Explanation: Profit and Loss Account appearing on the Assets side of a Balance Sheet represents debit balance in the Profit & Loss Account (i.e. undistributed losses). Such losses are to be borne by the old partners in their old profit sharing ratio.



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