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Workmen Compensation Reserve is ₹76000 and there is no claim. What happens on admission?

Answer and explanation

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

When there is no claim this reserve is like accumulated profit. The full reserve is shared among old partners in old ratio.

Related tags

Workmen Compensation ReserveNo ClaimOld PartnersReservesReconstitution Admission Of A PartnerAccountancyClass 12 Mcq

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