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12th Class Accountancy Admission of a Partner Question Bank MCQs - Reconstitution Of a Partnership Firm : Admission of a Partner

  • question_answer
    Mona and Tina were partners in a firm sharing profits in the ratio of 3 : 2. Naina was admitted for 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 Rs. 32,000. The claim on account of workmen's compensation was determined at Rs. 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.

    Correct Answer: B

    Solution :

    Debited to Revaluation Account.


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