Question

what is the entry of recorded to distribute reserve or cr p/l a/c given in the balance sheet and wht is the effect of thes entry​

Answer 1

Answer:

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:

General Reserve a/c..... Dr.

To Partner's Capital a/c