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Home › CBSE Class 12 (Commerce) › Accountancy › Accounting for Partnership Firms: Dissolution of a Partnership Firm › If profits cannot cover the losses, the next sou…

If profits cannot cover the losses, the next source is:

ALoans from the partners
BCapital of the partners
COverdraft from the bank
DSale of the goodwill
Answer & Solution
Correct answer: B. Capital of the partners
After profits are exhausted, losses are written against the capital of the partners.
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