State accounting treatment for transfer of Reserves and Accumulated profits
the Balance Sheet of an enterprise may depict accrued gains in the pattern of a general reserve on reserve fund and on accrued losses in the pattern of gain and loss a/c debit balance. The retiring/dead partner is authorised to his or her share in the accrued profits and is also responsible to share the accrued losses. These accrued gains or losses perfectly fits the partners and should be transferred to the capital a/c of the partners in their old profit sharing ratio.
