Practicing Success
Practicing Success
CUET Preparation Today
| General reserve at the time of admission of a new partner in partnership firm is transferred to: |
Old partners account in old ratio All partners account in new ratio Revaluation account None of above |
| Old partners account in old ratio |
| Sometimes a firm may have accumulated profits not yet transferred to capital accounts of the partners. These are usually in the form of general reserve, reserve and/or Profit and Loss Account. The new partner is not entitled to have any share in such accumulated profits. These are distributed among the partners by transferring it to their capital current accounts in old profit sharing ratio. Similarly, if there are some accumulated losses in the form of a debit balance of profit and loss account and/or deferred revenue expenditure appearing in the balance sheet of the firm. |
