At the time of admission of a new partner, general reserve, appearing…

The correct answer is Option (2) → Old partners capital A/c in old ratio

General reserve is a profit earned before the new partner came in. It belongs to the old partners and is distributed among them in their old profit sharing ratio.

Option (1) All partners capital A/c in new ratio — Incorrect. The new partner has no right in profits earned before his admission.

Option (3) Sacrificing partners capital A/c in sacrificing ratio — Incorrect. The sacrificing ratio is used for the new partner’s premium for goodwill, not for past reserves.

Option (4) Old partners capital A/c in gaining ratio — Incorrect. The gaining ratio is used on retirement or death, not for distributing reserves on admission.