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General reserve is ₹48000. Why is it not transferred to Realisation Account on dissolution?

Answer and explanation

Correct answer: Because it is accumulated profit not an asset or external liability

Reserves and profit balances are distributed directly through partners capital accounts. Realisation Account is only for assets and external liabilities.

Related tags

AccountancyGeneral ReserveCapital AccountsRealisation AccountDissolution Of A Partnership FirmClass 12 Mcq

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