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Workmen Compensation Reserve is ₹90000 and there is no claim. What is its treatment?

Answer and explanation

Correct answer: Full reserve is distributed among old partners in old ratio

When there is no claim this reserve is treated like accumulated profit. So the full balance is shared among old partners.

Related tags

Workmen Compensation ReserveNo ClaimOld RatioReservesReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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