At the time of an admission of a new partner, the general reserve that is appearing in the old balance sheet is transferred to _____.
A. New partners’ capital accounts
B. Old partner’s capital accounts
C. All partner’s capital accounts
D. None of the above
Answer:B
At the time of an admission of a new partner, the general reserve that is appearing in the old balance sheet is transferred to _____.
A. New partners’ capital accounts B. Old partner’s capital accounts C. All partner’s capital accounts D. None of the above