Question

How would you treat general reserve on death of a partner? (Answer in one sentence)

Answer 1

i think the treat of goodwill is correct answer

thank you

Answer 2

Answer:

Explanation:

Reserves are the amount of profits which are set aside until for some purpose when there is a need for money. A reserve account's name indicates its use or the purpose and is a part of the net value of a company. Therefore we can say reserve is an amount that appears on the liability side of the statement of financial position.

The Partnership Agreement will be dissolved if one of the partners dies or fails. Hence, the other partner will owe a debt to the estate of their partner for their share of the partnership accruing on the date of their death.