If there is no claim against the Workmen Compensation reserve, it is credited to the old partners' capital accounts. This ensures that the reserve amount is distributed among the existing partners before the new partner is admitted.
English
50 Questions
200 Marks
45 Mins EnglishRead the following passage and answer question from :
The Balance sheet of Himanshu, Pranav and Tushar who were sharing profits in proportion to their capital stood as follows :
Addition Information :
(A) On 1st April 2022, they admitted Rachit into partnership for 1/6th share in future profit
(B) Rachit will bring ₹25,000 for capital and ₹15,000 for goodwill.
(C) A provision for doubtful debts of 7% was to be made.
(D) Land and building is to be appreciated to 120%.
(E) Machinery is decreased by ₹1,500.
On the basis of above case give answer to question :
