life insurance reserve fund is Transfer to
capital account
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When death occurs of partner, the amount received is credited to the Joint Life Policy Account; the amount standing to the credit of the Joint Life Policy Reserve Account is also transferred to it and then it is closed by transfer to the capital accounts of all partners (including the deceased partner)
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A reserve is profits that have been appropriated for a particular purpose. Reserves are sometimes set up to purchase fixed assets, pay an expected legal settlement, pay bonuses, pay off debt, pay for repairs and maintenance, and so forth. ... Thus, funds designated as a reserve can actually be used for any purpose.
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