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Question

According to Partnership Act 1932, which account is debited for the transfer of net loss?

This question was previously asked in
SSC CGL 2017 (Tier 1) Previous Year Paper (16-Aug-2017) (Shift 1)
The correct answer is

Capital account

The correct answer is option 2. According to the Partnership Act 1932, the net loss is transferred to the Capital account of the partners. This is because each partner’s capital account will be debited with their share of the loss.

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Similar Questions

  1. If the partnership deed is silent, then what is the minimum salary or other remuneration paid to partner every month for taking part in the conduct of the business?

  2. A and B share profit in the ratio of 5 : 2. C is admitted as a partner who sets 1/7 share. If C acquires 3/28 from A and 1/28 from B, then what will be the new profit-sharing ratio?

  3. A, B and C started a business with initial investments of Rs. 20000, Rs. 25000 and Rs. 10000, respectively. After 5 months from start, A invested Rs. 4000 more. After 6 months from start, C invested Rs. 8000 more. After 4 months from start, B withdrew Rs. 8000. At the end of the year, they will receive a profit of Rs. 'x'. In what ratio they will share the profits ?


Important Questions from Partnership

  1. A, B, C invest Rs. 20000, Rs. 30000, Rs. 40000 in a business. After one year, A withdrew his money but B and C continued for one more year. If the net profit after 2 years be Rs. 32000, then A’s share in the profit is:

  2. Adesh and Bhadresh are partners sharing profits and losses in the ratio of 3 ∶ 2. Chandresh is admitted for 20% of share in profits out of which half of the share was gifted by Adesh and remaining was acquired by Chandresh from Adesh and Bhadresh in equal proportion. What would be new profit-sharing ratio?

  3. Mathur started a business by investing R6,76,000 as capital. After 4 months, Goyal joined the business by investing a capital of Rs. 5,07,000. A total of Rs. 2,60,000 including 25% of the total profit was given to Goyal for conducting business at the end of the year. How much profit Mathur will get?

  4. Mannu and Bhanu are partners. Bhanu wants to admit his son Channu into business. Can Channu become the partner of the firm?

  5. L, S and D are partners sharing profits in the ratio of \(\frac{2}{5},\frac{3}{7}\) and \(\frac{3}{10}\). If S retires from the firm, what will be the gain ratio of L

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