At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to:

Old partner's capital account

The correct answer is Option (3) → Old partner's capital account.

At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to the Old partner's capital account.

When a new partner is admitted to the partnership, the general reserve (which is a part of accumulated profits or reserves) appearing in the old balance sheet is transferred to the old partner's capital accounts. This is because the reserve belongs to the old partners, and it reflects their share in the accumulated profits up until the point of admission. The distribution of the general reserve is usually done in the old partners' profit-sharing ratio, as they are the ones who have accumulated that reserve before the new partner joined. Therefore, the general reserve is transferred to the old partner's capital accounts.