To which account is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner?

Partners current capital A/c

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Partners fixed capital A/c

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Revaluation A/c

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Profit and loss adjustment A/c

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Solution

The correct option is A Partners current capital A/c
Partners current capital A/caccount is accumulated balances of profit and loss account and general reserve account are transferred at the time of admission of a partner. These balances are distributed to the old partners in the old ratio.

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