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There is no claim against Workmen Compensation Reserve. What is its treatment on admission?

Answer and explanation

Correct answer: Entire reserve will be distributed among old partners in old ratio

When there is no claim Workmen Compensation Reserve is like accumulated profit. So the entire balance goes to old partners.

Related tags

Workmen Compensation ReserveNo ClaimOld PartnersReservesReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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