At the time of admission of a new partner, general reserve appearing in the old balance sheet is transferred to:
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Old partner's capital account
A general reserve is profit kept aside in the years before the admission. It was earned by the old partners, so on admission it is transferred to their capital accounts in the old ratio; the new partner gets no share of it.
NCERT (2026-27 edition):
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