The unfavorable balance of Profit & Loss account should be: A)Subtracted from current assets B)Subtracted from capital C)Subtracted from liabilities

The Unfavourable balance of the P/L account should be deducted from the capital.

It is the owners responsibility to bear a loss happens like the sharing of profit, owners equity to the business is called capital, so the unfavorable balance of P&L account must be deducted from Capital

B) Subtracted from capital.