Question

On admission of a new partner, the existing balance of ______ is not transferred to old partners capital a/c.

• A. ESI/EPF a/c
• B. General reserve a/c
• C. Profit and loss a/c
• D. All the above

Answer 1

The correct option is A ESI/EPF a/c

The balance of employee provident fund of new partner on admission is not transferred to old partner because at the time of admission new profit sharing ratio is to be calculate valuation of goodwill and EPF (employee provident fund ) is reuired sepretly not transferred in old partner capital account.