Recording of unrecorded trade payables on reconstitution of partnership firm results in ........

Recording of unrecorded trade payables on reconstitution of partnership firm results in:

Profit to existing partners

Loss to existing partners

No profit no loss

None of these

- Recording unrecorded trade payables involves recognizing liabilities that were previously omitted.

- This results in a reduction of partners' capital as more debts need to be paid off.

- Consequently, it leads to a negative financial impact on the existing partners.

- This situation would naturally result in a "Loss to existing partners."

Option:2, Loss to existing partners is correct.

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