Question

2) The ratio in which general reserve is distribute..​

Answer 1

Answer:

General Reserve is an accumulated profit , we know that on admission of a partner we transfer accumulate profits to the old partners capital account in their old PSR . Therefore here general reserve shall be distributed in Old ratio between X and Y i.e 5:3.

Answer 2

Answer:

The ratio in which general reserve is distribute.

Explanation:

• First let us understand what is general reserve- General reserves is the term which is referred to the reserve fund. Which is created by keeping a part of profit which is earned by any business during the course of account period which fulfill the various business needs. Needs such as meeting contingencies, offsetting future losses and many more.
• The examples of general reserves are- investment fluctuation reserves, debenture redemption reserves.
• Reserve is the profit, therefore a reserve is always credit balance.
• There are three types of reserves- revenue , capital and specific.
• The ratio in which general reserve is distribute is on death of partner in their old profit sharing ratio.