The balance in capital reduction a/c after writing off all accumulated loss, fictitious assets and overvalued assets are transferred to _______.

Capital reserve

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General reserve

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Reserve capital

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Goodwill

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Solution

The correct option is A Capital reserve
After writing off other accumulated loss, fictitious assets, patents to be written off as far as possible.
Capital Reserves to be continued in Balance Sheet and above are to be transferred in this A/c.

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All assets (except cash/bank and fictitious assets) are transferred to the ___ side of Realisation Account.

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