Question : R, S and T are partners. Before changing their profit-sharing ratio to 5:3:2, they were sharing profit equally. Workmen's compensation reserve exited at Rs 1,00,000 against which a claim existed at Rs 20,000. The total amount that will be credited to their capital accounts in their old profit-sharing ratio will be?
Option 1: Rs 1,00,000
Option 2: Rs 80,000
Option 3: Rs 1,00,000 credited and Rs 20,000 debited
Option 4: Rs 20,000 credited and Rs 1,00,000 debited
Correct Answer: Rs 80,000
Solution : Answer = Rs 80,000
Workmen's Compensation Reserve A/c Dr 1,00,000
To Claim for Compensation A/c 20,000
To R's Capital A/c 40,000
To S's Capital A/c 24,000
To T's Capital A/c 16,000
(old ratio = 5:3:2)
Hence, the correct option is 2.