Question

Mona and Tina were partners in a firm sharing profits in the ratio of 3: 2. Naina was admitted with 1/6th share in the profits of the firm. At the time of admission, Workmen’s Compensation Reserve appeared in the Balance Sheet of the firm at < 32,000. The claim on account of workmen’s compensation was determined at < 40,000. Excess of claim over the reserve will be:
(A) Credited to Revaluation Account.
(B) Debited to Revaluation Account.
(C) Credited to old partner’s Capital Account.
(D) Debited to old partner’s Capital Account

Answer 1

(D) Debited to old partner's capital account

(D) Debited to old partner's capital accountMay be