Can you explain the treatment of Advertisement Suspense A/c in Admission and Retirement/Death of a partner???

Dear Student,

Advertisement Suspense A/c is a part of accumulated losses, therefore, like any other accumulated loss it should be transferred to Debit side of Partner's Capital Account in their old profit sharing ratio.

1. In case of Admission - It is transferred to Old Partners
2. In case of Retirement - It is transferred to All the Partners including the Retiring Partner or Deceased Partner.

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