Can you please help me with the qn?
Dear Student
Option is B i.e loss to existing partners
Recording of an unrecorded liability at the time of reconstitution of partnership firm will lead to loss of partners. Unrecorded liability will be recorded on debit side of revaluation account and loss on revaluation account will be shared by existing partners in old ratio. So it is loss to existing partners .
Regards
Option is B i.e loss to existing partners
Recording of an unrecorded liability at the time of reconstitution of partnership firm will lead to loss of partners. Unrecorded liability will be recorded on debit side of revaluation account and loss on revaluation account will be shared by existing partners in old ratio. So it is loss to existing partners .
Regards