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General reserve Rs 12000 was to be created but was omitted. How will profit distributed among partners appear?

Answer and explanation

Correct answer: Rs 12000 higher

Reserve should have been deducted from profit. Omitting it makes profit distributed to partners Rs 12000 higher.

Related tags

Reserve OmissionProfit DistributionErrorAdjustmentsPartnership Accounts Basic ConceptsAccountancyClass 12 Mcq

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