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State accounting treatment for transfer of Reserves and Accumulated profits
State accounting treatment for transfer of Reserves and Accumulated profits
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Reserve A/c Dr.
Profit and Loss A/c (Cr. Balance) Dr.
Workmen Compensation Reserve A/c Dr. (Excess of reserve over liability)
Investments Fluctuation Reserve A/c Dr. ( Excess of reserve over the difference
Between book value & Market value)
To all partners’ capital/current A/c (in old ratio)