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Question

The account will be debited and the account will be credited when partners distributes general reserves at the time of dissolution.

A
capital reserves
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B
goodwill
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C
general reserve
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D
partner's capital
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Solution

The correct options are
C general reserve
D partner's capital
When the general reserve is distributed between the partners in their profit sharing ratio, the general reserve account will be debited and the partner's capital account will be credited.

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