If there is a reserve for any specific purpose, it will be shared only to the extent of that part for which there is _________ liability.

Investment Fluctuaction Reserve

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Workment Compensation Reserve

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General Reserve

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None of these

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Solution

The correct option is C
General Reserve

If there is a reserve for any specific purpose, it will be shared only to the extent of that part for which there is no known liability.

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Similar questions

Lavanya and Priya were partners sharing profits in the ratio of 2 : 1. Pass journal entries for the following transactions at the time of dissolution firm:

(i) Workmen Compensation Reserve stood Rs 1,50,000 in the Balance Sheet and there was no liability towards Workmen Compensation.

(ii) Workmen Compensation Reserve stood at Rs 1,50,000 in the Balance Sheet and liability in respect of it was ascertained at Rs 90,000.

(iii) Workmen Compensation Reserve stood at Rs 1,50,000 in the Balance Sheet and liability in respect of it was ascertained at Rs 1,50,000.

(iv) Workmen Compensation Reserve stood at Rs 1,50,000. In the Balance Sheet and liability in respect of it was ascertained at Rs 2,00,000.

(v) There was no Workmen Compensation Reserve in the Balance Sheet and firm had to pay Rs 40,000 as compensation to the workers.

Do we transfer Investment Fluctuation Reserve to Realisation A/c?

Q. A specific reserve created to compensate workers in the event of any medical illnesses while they are working is called compensation reserve.

Q. General reserve can be used only for some specific purposes.

Q. A specific reserve can be created for specific purpose.

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If there is a reserve for any specific purpose, it will be shared only to the extent of that part for which there is _________ liability.

The correct option is C General Reserve If there is a reserve for any specific purpose, it will be shared only to the extent of that part for which there is no known liability.

The correct option is C
General Reserve

If there is a reserve for any specific purpose, it will be shared only to the extent of that part for which there is no known liability.