Why is the General Reserve distributed among the old partners before a new partner is admitted?
Why is the General Reserve distributed among the old partners before a new partner is admitted?
Anurag Pathak Changed status to publish July 18, 2023
The amount credited in the General Reserve is an amount set aside out of profits when the new partner was not a partner. Thus, it belongs to the old partners and therefore, is distributed among old partners in their old profit-sharing ratio.
Anurag Pathak Changed status to publish July 18, 2023
