At the time of retirement of a partner, the balance of General Reserve is distributed among: MCQ with Answer and Explanation

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At the time of retirement of a partner, the balance of General Reserve is distributed among:

A. Only the retiring partner

B. All partners in their old profit sharing ratio

C. Equally among all partners

D. Only continuing partners in new ratio

Answer: Option B

Solution (By JKSSB Mock Tests)

General reserve represents accumulated past profits earned by all partners, so it is credited to all partners in their old ratio.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Which of the following is NOT a subsidiary book?

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Correct Answer: Option D

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Trial balance is a statement, not a book of original entry. Subsidiary books include cash book, purchase book, sales book, journal proper, etc.

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Correct Answer: Option A

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Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) legally mandated regular social audits by Gram Sabhas to monitor works.

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