If old partners' capital accounts are debited in the entry for closing an old reserve, what is the main error?

Correct answer: लाभ को हानि की तरह लिखा गया

The governing accounting rule is that an accumulated reserve is an undistributed profit belonging to the old partners. When the reserve is transferred to their capital or current accounts, the Reserve Account is debited because it is closed, while the old partners’ accounts are credited because their claims increase. Debiting those capital accounts reverses the normal effect: it reduces the partners’ capital as though a loss had been incurred. Thus the entry treats an accumulated profit as a loss, which is the main error and makes option A correct. Option B describes the opposite mistake, option C is irrelevant because the new partner has no right to past reserves, and option D confuses a book reserve with cash.