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.
CAclubindia
