Question on: SS2 Accounting - Partnership Account: Terminologies Used

What are reserves in a partnership account?

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A

The portion of profits that is set aside for future business needs or as a contingency fund

B

The amount of money paid by the partnership to each partner for the use of their invested capital

C

The value of the partnership's reputation and customer base

 

D

The allocation of profits among partners based on their ownership percentage

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Correct Option: A

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