question_answer

‘A’ and ‘B ‘are partners in a firm. They share profits in the ratio of 1:1. In this year, they suffered a loss. They maintain capital accounts under fluctuating account method Pass journal entry to transfer the loss to the capital accounts of ‘A’ and ‘B’.

A) Profit and Loss Appropriation A/c         Dr.            To As Capital A/c            To B’s Capital A/c

B) As Capital A/c                                        Dr.            To B’s Capital A/c

C) As Capital A/c                                        Dr.     B’s Capital A/c                                   Dr.            To Profit and Loss A/c

D) None of the above