At the time of admission of a new partner, general reserve appears 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
General reserve is profit kept back in the business before the new partner joined. The new partner has no share in it, so it is transferred to the old partners’ capital accounts in their old profit sharing ratio.
NCERT (2026-27 edition):
|
