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The deed says the incoming partner will not share old losses. How will accumulated losses be treated at admission?

Answer and explanation

Correct answer: Adjusted among old partners in old ratio

Old losses are not charged to incoming partner when the deed says so. They are adjusted among old partners.

Related tags

AdmissionAccumulated LossesOld PartnersPartnership DeedPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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