General Reserve appearing in the Balance

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Target Exam

CUET

Subject

Accountancy

Chapter

Dissolution of Partnership Firm

Question:

General Reserve appearing in the Balance Sheet is transferred to which account?

Options:

Partner's Capital account in their profit sharing ratio

Realisation Account

Partner's Capital account in their capital ratio

None of the above

Correct Answer:

Partner's Capital account in their profit sharing ratio

Explanation:

General Reserve is an appropriation of profits set aside for future ultimately belongs to the partner.