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Question
In the event of death of a partner, the amount of General Reserve is transferred to Partners' Capital Accounts in their ______.
Options
New Profit Sharing Ratio
Old Profit Sharing Ratio
Capital Ratio
None of the above
MCQ
Fill in the Blanks
Solution
In the event of death of a partner, the amount of General Reserve is transferred to Partners' Capital Accounts in their Old Profit Sharing Ratio.
Explanation:
It is done to ensure that the retried partner receives the requisite percentage of the firm's profits.
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