If the final result is a loss, how will it be recorded in the partners' accounts?

Correct answer: It will be debited

A loss reduces the partners' claims (capital or current accounts). In accounting decreases are shown on the debit side, so the loss from the profit & loss appropriation (or P&L) is debited to the partners' accounts. Option B is incorrect because a credit entry indicates profit or increase, not a loss. Option C is wrong since a loss reduces capital rather than increasing it. Option D is incorrect because the accounting result must be adjusted in partners' accounts. Exam tip: remember the rule — loss → debit the partners' capital/current accounts; profit → credit them.