Question

To which account is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner?

• A. Partners current capital A/c
• B. Partners fixed capital A/c
• C. Revaluation A/c
• D. Profit and loss adjustment A/c

Answer 1

The correct option is A Partners current capital A/c

Partners current capital A/caccount is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner. These balances are distributed to the old partners in the old ratio.