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State whether the following statement are true or false with reasons.Retiring partner is not entitled to share in general reserve and accumulated profit. |
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Answer» This statement is False. General reserve and accumulated profit are created out of past undistributed profit, such profits are the outcome of hard work of all the partners including retiring partner. Hence, retiring partner’s has right to share general reserve and accumulated profit. He is therefore, entitled to get share in general reserve and accumlated profit. |
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