Ruthenium silver bimetallic catalyst was prepared using co-impregnation method supported on high surface area alumina oxide support. The supported alloy system was subjected to CO (carbon monoxide) disproportion and the hydrogenation of the deposited carbon to study the effect of carbidic and graphitic carbon on the surface reactivity of the system. The data indicates that the carbon deposited as carbidic carbon enhances the production of the higher hydrocarbons. The reduction of the system at higher temperature converts a part of carbidic carbon into the graphitic carbon which inhibits the catalytic reaction. The data has been discussed in terms of ensemble /geometric and particle size effect produced by the addition of inactive metal to the active metal.