At the time of admission of a new partne

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Target Exam

CUET

Subject

Accountancy

Chapter

Admission of a Partner

Question:

At the time of admission of a new partner, general reserve appearing in the old Balance Sheet is transferred to which account?

Options:

All Partner's Capital Accounts

New Partner's Capital Account

Old Partner's Capital Accounts

None of the above

Correct Answer:

Old Partner's Capital Accounts

Explanation:

At the time of admission of a new partner, general reserve appearing in the old Balance Sheet is transferred to Old Partner's Capital Accounts.