In this que general reserve is distributed in which ratio and also explain....???

In this que general reserve is distributed in which ratio and also explain....??? - 6.000 (Bank overdraft} rare partners sharing profits and losses in the ratio of s : 3. Their Balance Sheet as March, Reserve "My Creditors 40,000 50,om 90,000 14.000 30,000 134,000 Furniture Patents Sundry Debtors 40,tm 44000 i Less: Provision for Doubtful Debts 39.0m Stock Cash at Bank Cash in Hand 3,000 On 1st April, 2017. they take Z into the partnership on the following terms: Z brings in 25,000 as his capital but cannot bring in 3.600 as his share Of goodwill. lb/ Patents are written Off from the books. Genera' Reserve witl appear in the books of the new firm at its original figure. (dy A Provision for Doubtful Debts is to be maintained @ 5% on Sundry (e' The new profit-sharing ratio of X, Y and Z is 2 ; 4 1, You ave required to show Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm, IAns.: toss on Revaluation— 7,200; Partners' Capital A/cs: Y— 39.Q@ Z—? '9,400: Balance Sheet Total—e 151,800, Goodwill adjustment Or. capna/ 4,950; captia' Cf. copoa/

Dear Student


General Reserve is an accumulated profit , we know that on admission of a partner we transfer accumulate profits to the old partners capital account in their old PSR .
Therefore here general reserve shall be distributed in Old ratio between X and Y i.e 5:3.



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