When a new partner is admitted, the balance of ‘General Reserve’ appearing in the Balance sheet at the time of admission is credited to
When a new partner is admitted, the balance of ‘General Reserve’ appearing in the Balance sheet at the time of admission is credited to
a) Profit & Loss Appropriation Account
b) Capital Accounts of all the partners
c) Capital Accounts of old partners
d) Revaluation Account
Anurag Pathak Changed status to publish June 1, 2023
Ans – c)
Explanation:-
The General Reserve is part of the past profits earned by the old partners. Thus it belongs to old partners in the old profit-sharing ratio.
Anurag Pathak Changed status to publish June 1, 2023
