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Commerce · Q827

Accounting

Graduate and Post Graduate · Commerce · question 827

Q827

On the retirement of a partner, the reserves created out of profits should be transferred to the capital accounts of:

A.
The remaining partners in their new profit sharing ratio
B.
The remaining partners in their old profit sharing ratio
C.
All the partners in the old profit-sharing ratio
Answer
D.
All the partners in the ratio of their capital balances

Answer: Option C

Solution

Answer: Option C
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