At the time of admission of a new partner, accumulated loss was distributed among all partners, including the new partner. What is the main accounting error?

Correct answer: The loss incurred before admission was charged to the new partner

Accumulated loss is generally incurred before the new partner’s admission, so it should be borne only by the old partners in their old profit-sharing ratio. Including the new partner is therefore the main accounting error. Option B describes the usual treatment, while C and D are unrelated to this mistake. Exam tip: Pre-admission accumulated profits or losses are adjusted only among the old partners.