Question : When a new partner is admitted the balance of 'General Reserve' appearing in the Balance Sheet at the time of admission is credited to
Option 1: Profit and Loss Appropriation Account
Option 2: Capital Accounts of all the partners
Option 3: Capitals Accounts of Old Partners
Option 4: Revaluation Account
Answer (1)
22nd Jan, 2024
Correct Answer: Capitals Accounts of Old Partners
Solution :
Answer =
Capitals Accounts of Old Partners
In case of admission of a partner general reserve appearing in the liabilities side of the balance sheet will be distributed among the old partners in their old profit sharing ratio.
Hence, the correct option is 3.
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