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Workmen Compensation Reserve is ₹50000 and there is no claim. What is its treatment on admission?

Answer and explanation

Correct answer: Distribute among old partners in old ratio

When there is no claim the full reserve is treated as accumulated profit. It is shared among old partners in old ratio.

Related tags

Workmen Compensation ReserveNo ClaimOld RatioReservesReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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