Question

21.A. Answer in one sentence only:
1. What is Legacy?
2. In which ratio general reserve is distributed on dea
3. What do you mean by capital deficiency?
4. What is Benefit ratio?
5. What is CAS?​

Answer 1

Explanation:

Sometimes a firm may have undistributed reserves and profits yet to be transferred to the partner's capital accounts, for example, general reserve. At the time of admission of a partner, these reserves are distributed to the partner's capital accounts in their old profit sharing ratio. The partner's capital account is credited with his share of the reserve.

The accounting entry is: