Question : At the time of reconstruction of a partnership due to admission of a new partner, the balance of the Workmen Compensation Reserve will be transferred to:
Option 1: Old partners in the sacrificing ratio
Option 2: Old partners in their old profit sharing ratio
Option 3: Revaluation Account
Option 4: All partners in the new profit sharing ratio
Correct Answer: Old partners in their old profit sharing ratio
Solution : Answer = Old partners in their old profit-sharing ratio
During the reconstruction of a partnership due to the admission of a new partner, the balance of the Workmen Compensation Reserve will typically be transferred to the old partners in their old profit-sharing ratio. This ensures that the old partners retain the benefits and burdens associated with the reserve in line with their previous profit-sharing arrangements. Hence, the correct option is 2.
Question : When goodwill existing in the books is written off at the time of admission of a partner it is transferred to Partners' Capital Accounts in their
Question : Gain/loss on revaluation at the time of change in profit sharing ratio of existing partners is shared by ______(i)_____ whereas in case of admission of a partner, it is shared by _____(ii)_____.
Question : At the time of admission of a partner, Employees Provident Fund is:
Question : At the time of admission of a partner, what will be the effect of the following information? Balance in Workmen compensation reserve Rs. 28,000. Claim for workmen compensation Rs. 20,000.
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.
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