At the time of admission of a new partner, in which ratio do the old partners bear the accumulated losses?

Correct answer: In the old profit-sharing ratio

Accumulated losses relate to past periods, when only the existing partners were entitled to profits and responsible for losses. Therefore, they are borne by the old partners in their old profit-sharing ratio; the new partner is not charged with these past losses. Exam tip: accumulated profits and accumulated losses are generally adjusted among old partners in the old ratio.