alleryReserves in the books at the time of admission are distributed among
ANew partner only
BAll partners in new ratio
COld partners in old ratio
DGoodwill A/c
Answer & Solution
Correct answer: C. Old partners in old ratio
1. Reserves accumulated before admission belong solely to the old partners.
2. They are credited to OLD partners in OLD ratio before the new partner is brought in.
3. Doing otherwise would unjustly enrich the incoming partner.
4. Hence (B) is correct.
_Source: Maharashtra Balbharati Std XII Book-Keeping & Accountancy, Ch 3 "Reconstitution of Partnership (Admission of Partner)", §3.5 ¶§3.5_
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