Advanced accounting

Aditya Patil (8 Points)

19 April 2017  

Kindly help.

Hello,

I am in confusion regarding some questions of chapter 3 (advanced Accounting)... In question no 5 pg no 3.10 of study material, while calculating the capital ratio the general reserve is not added to the capital of partners whereas in Q 6 pg no 3.14 both the reserves i.e. general and capital reserves are added to the capital of partners for calculating capital ratio.

There are 2 doubts

1. Why didn't they add general reserve in Q.5

2. Do capital reserves are also added in capital of partners for calculating Capital ratio.

I would appreciate and be glad if quick and correct reply is received.

Thank you.