Commerce Exam > Commerce Questions > Treatment of General Reserve at the time of r...
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Treatment of General Reserve at the time of retirement is:
- a)Credit side of Capital account of all the partners
- b)Debit the gainer partner
- c)Debit side of Capital account of all the partners
- d)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.
Correct answer is option 'A'. Can you explain this answer?
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Treatment of General Reserve at the time of retirement is:a)Credit sid...
At the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.
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Treatment of General Reserve at the time of retirement is:a)Credit sid...
Treatment of General Reserve at the time of retirement of a partner
General reserve is a reserve created by a firm out of its profits. It is kept aside for meeting future contingencies or for the expansion of the business. At the time of retirement of a partner, the treatment of general reserve is as follows:
Credit side of Capital account of all the partners
The general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio. This is because the general reserve belongs to all the partners, and they are entitled to it in their profit sharing ratio.
Debit the gainer partner
If the retiring partner is entitled to a share of the general reserve, then the gainer partner should be debited with the retiring partner's share of the general reserve. This is because the gainer partner would be benefited by the retirement of the partner and would thus have to compensate the retiring partner for his share of the general reserve.
Only in Balance Sheet
The general reserve is not shown in the partner's capital account. It is only shown in the balance sheet as a liability under the head 'Reserves and Surplus'. The general reserve is a reserve and not a profit, and hence it is not distributed among the partners. It remains in the business as a reserve for meeting future contingencies or for the expansion of the business.
In conclusion, the general reserve is treated as a liability in the balance sheet and is credited to all partners in their old profit sharing ratio at the time of retirement of a partner. If the retiring partner is entitled to a share of the general reserve, then the gainer partner should be debited with the retiring partner's share of the general reserve.
General reserve is a reserve created by a firm out of its profits. It is kept aside for meeting future contingencies or for the expansion of the business. At the time of retirement of a partner, the treatment of general reserve is as follows:
Credit side of Capital account of all the partners
The general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio. This is because the general reserve belongs to all the partners, and they are entitled to it in their profit sharing ratio.
Debit the gainer partner
If the retiring partner is entitled to a share of the general reserve, then the gainer partner should be debited with the retiring partner's share of the general reserve. This is because the gainer partner would be benefited by the retirement of the partner and would thus have to compensate the retiring partner for his share of the general reserve.
Only in Balance Sheet
The general reserve is not shown in the partner's capital account. It is only shown in the balance sheet as a liability under the head 'Reserves and Surplus'. The general reserve is a reserve and not a profit, and hence it is not distributed among the partners. It remains in the business as a reserve for meeting future contingencies or for the expansion of the business.
In conclusion, the general reserve is treated as a liability in the balance sheet and is credited to all partners in their old profit sharing ratio at the time of retirement of a partner. If the retiring partner is entitled to a share of the general reserve, then the gainer partner should be debited with the retiring partner's share of the general reserve.
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Treatment of General Reserve at the time of retirement is:a)Credit sid...
CORRECT ANSWER IS 'A' AND 'D' .
BECAUSE : The amount of general reserve is transferred to the capital accounts of all the partners in their profit sharing ratio. This is done to give the retiring partner his amount of share in the accumulated profits of the firm.
BECAUSE : The amount of general reserve is transferred to the capital accounts of all the partners in their profit sharing ratio. This is done to give the retiring partner his amount of share in the accumulated profits of the firm.
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Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer?
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Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer?.
Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer?.
Solutions for Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce.
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Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer?, a detailed solution for Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? has been provided alongside types of Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Treatment of General Reserve at the time of retirement is:a)Credit side of Capital account of all the partnersb)Debit the gainer partnerc)Debit side of Capital account of all the partnersd)Only in Balance SheetAt the time of retirement of a partner, general reserve given in the balance sheet should be credited to all the partners (including outgoing partner) in their old profit sharing ratio.Correct answer is option 'A'. Can you explain this answer? tests, examples and also practice Commerce tests.
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