Question :
General reserve appearing in the balance sheet is transferred to -
Option 1: Partners’ Capital Accounts in profit sharing ratio
Option 2: Partners’ Capital Accounts in capital ratio
Option 3: Realisation Account
Option 4: None of the above
Answer (1)
23rd Jan, 2024
Correct Answer: Partners’ Capital Accounts in profit sharing ratio
Solution : A general reserve is an appropriation made from profits that were originally intended for the partner but were placed aside for future use.
Hence the correct answer is option 1.
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