Question 4 of 64beginner🧠 RememberMCQ1 mark
At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to:
Exercise: Test your Understanding – II | Q: 1 | (Page 26)
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Explanation
Option (C) is correct. The provided context states that accumulated profits, such as general reserves, are not entitled to the new partner. Therefore, these should be transferred to the old partners’ capital accounts in their old profit sharing ratio.