should jlp reserve,wcr be distributed in partners capital account or only transfered to realisation account

1 Answer

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Always follow the simple rule:

If against any asset, there is some reserve or fund, it is better to transfer both to the Realisation A/c. In case there is no payment/liability to be paid against any reserve or provision, then it can be distributed among partners in their profit sharing ratio.

answered Aug 23, 2014 by jbsclasses (3,971 points)