general reserve at the time of admission of partner is transferred to
revaluation a/c
Incorrect Answerold partner's capital a/c
Correct Answercapital a/cs of all partners, including new partner
Incorrect Answernone of the above
Incorrect AnswerExplanation:
Sometimes a firm may have accumulated reserves not yet transferred to the partner's capitals accounts. These are in the form of general reserve, reserve fund etc. The new partner is not entitled to share in these reserves. Hence, at the time of admission, these reserves are transferred to the old partner's capital accounts in their profit sharing ratio.
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By: SWAPNIL AGGARWAL