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Treatment in Partner's Capital Account-Change in PSR

After transfe...

Question

After transferring the general reserve to partners' capital account, will it be shown in the balance sheet?

A

No, it will not be shown in the balance sheet.

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B

Can't say

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C

Yes, it will be shown in the balance sheet

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D

None of these

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Solution

The correct option is A
No, it will not be shown in the balance sheet.

After transferring the general reserve to partners' capital account, it will be removed from the balance sheet.

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Similar questions

After distribution of General Reserve in Partners' Capital Account, will it be shown under balance sheet?

Q. X, Y are partners sharing profits in the ratio of 2 : 1 . On 31st March, 2018, their Balance Sheet showed General Reserve of ₹ 60,000. It was decided that in future they will share profits and losses in the ratio of 3 : 2 . Pass necessary journal entry in each of the following alternative cases :
(i) If General Reserve is not to be shown in the new Balance Sheet .
(ii) If General Reserve is to be shown in the new Balance Sheet .

Q. X and Y are partners sharing profits in the ratio of 2:1. On 31st March, 2018 their Balance Sheet showed General Reserve of Rs. 60,000. It was decided that in future they will share profits and losses in the ratio of 3:2. Pass necessary Journal entry in each of the following alternative cases:-
(i) If General Reserve is not be shown in the new Balance Sheet.
(ii) If General Reserve is to be shown in the new Balance Sheet.

Reserve shown in the Balance sheet are transferred to the credit side of capital accounts at the time of retirement of a partner

Q. On retirement of a partner, goodwill appears in the balance sheet , it will be written-off by debiting the capital accounts of partners.

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