Callie was admitted to the adams amp beal partnership four, Ask an Expert

Accounting

Callie was admitted to the Adams & Beal Partnership four years ago. The partnership has a deficiency at year end for the current year. How could this deficiency be accounted for?

Use the profit and loss ratios to absorb the deficiency
Do not account for the loss in the year incurred, it can be offset against income in future years
Do not account for the loss in the year incurred, it could be offset against income in future years or carried back to offset income in prior years

Losses are not passed on to individual partners in a partnership.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9796962

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