Question

When a new partner is admitted, the balance of 'General Reserve' appearing in the Balance Sheet is credited to ______.

विकल्प

• Profit and Loss Appropriation Account

• Capital Accounts of all partners

• Revaluation Account

• Capital Accounts of old partners

Answer 1

When a new partner is admitted, the balance of 'General Reserve' appearing in the Balance Sheet is credited to Capital Accounts of old partners.

Explanation:

In the previous profit-sharing ratio, the amount of "General Reserve" in the balance sheet during the company's restructuring is moved to the capital account of the former partner.