Question
Accountancy Question on Balance sheet statement
At the time of admission of a new partner, general reserve appearing in the old Balance Sheet is transferred to:
A
old partners in old Profit Sharing Ratio
B
old partners in new Profit Sharing Ratio
C
old partners in new Profit Sharing Ratio
D
all partners in the new Profit Sharing Ratio
Answer
old partners in old Profit Sharing Ratio
Explanation
Solution
The correct option is (A) :old partners in old Profit Sharing Ratio