Question

Profits and losses of previous years which are not distributed to the partners are called _________. *

undistributed profits and losses
accumulated profits and losses
both a & b
none of the above

Answer 1

Answer:

both a&b

Explanation:

I know that this answer is t

Answer 2

Answer:

Sometimes the balance sheet of the firm shows accumulated profits like general reserve, profit & loss a/c etc. Even the retiring partner should get a share of the undistributed profits because the accumulated profit was created while he was a partner and is also liable to share the accumulated losses (if any). These accumulated profits and losses should be transferred to all partners' capital accounts in their profit sharing ratio.

Explanation:

I think this will help you.