Why are “Reserves & Surplus” distributed at the time of reconstitution of the firm? Post category:Accountancy Reading time:1 mins read SOLUTION These belong to old partners. As such, these should be distributed amongthem. Please Share This Share this content Opens in a new window Twitter Opens in a new window Facebook Opens in a new window Google+ Opens in a new window Pinterest Opens in a new window LinkedIn Opens in a new window Viber Opens in a new window VK Opens in a new window Reddit Opens in a new window Tumblr Opens in a new window Viadeo Opens in a new window WhatsApp Read more articles Previous PostWhat is the nature of ‘Revaluation Account’? Next PostGive the accounting entry for unrecorded assets in case of reconstitution of a partnership firm. (C.B.S.E. 2019, Delhi) You Might Also Like In the absence of a Partnership Deed, in which ratio do the old partners sacrifice their share of profit in case of admission of a new partner? (C.B.S.E. 2019) October 7, 2022 A, B and C are in partnership sharing profits and losses in the ratio of 5 : 4 : 1 respectively. Two new partners D and E are admitted. The profits are now to be shared in the ratio of 3 : 4 : 2 : 2 : 1 respectively. D is to pay Rs. 90,000 for his share of Goodwill but E has insufficient cash to pay for Goodwill. Both the new partners introduced Rs. 1,20,000 each as their capital. You are required to pass necessary Journal entries. August 1, 2022 Can a Company issue a share having face value of Rs. 10 at Rs. 97 September 28, 2022 Leave a Reply Cancel replyYou must be logged in to post a comment.