Question

dinesh alvin and pramod are partners in a firm sharing profits and losses 5ratio 2 ratio 3 ratio dinesh dies prepare patners capital account

Answer 1

DRR is created out of profits of the company & is debited to the statement of P&L(which means profit is reduced). now at the time of redemption of debentures, DRR is transferred to general reserve to give effect to the earlier reduction in profit.