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Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 20,000. Claim for workmen compensation Rs. 45,000.

Option 1: Rs. 5,000 Debited to the Partner's capital Accounts. 

Option 2: Rs. 40,000 Debited to Revaluation Account.

Option 3: Rs. 25,000 Debited to Revaluation Account.

Option 4: Rs. 40,000 Credited to Revaluation Account.


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 24th Jan, 2024

Correct Answer: Rs. 25,000 Debited to Revaluation Account.


Solution : Answer = Rs. 25,000 Debited to Revaluation Account

W. Compensation Reserve A/c Dr 20,000

Revaluation A/c Dr 25000

To Claim for Compensation - 45000
Hence, the correct option is 3.

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