Sonu, Monu and Gopal are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The extract of their Balance Sheet is as follows:
Sonu, Monu and Gopal are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. The extract of their Balance Sheet is as follows:
| Liabilities | ₹ | Assets | ₹ |
| Workmen Compensation Reserve | ₹ 48,000 |
At the time of retirement of Sonu, if liability for Workmen Compensation of ₹ 24,000 is to be created, then what amount of Workmen Compensation Reserve will be shown in new Balance Sheet?
a) ₹ 48,000
b) ₹ 72,000
c) ₹ 24,000
d) ₹ Not to be shown in new Balance Sheet
Anurag Pathak Changed status to publish July 2, 2023
Ans – d)
Explanation:-
If no information is given all accumulated profits and reserve are distributed in old partners in their old profit sharing ratio. Thus no workmen compensation reserve will be shown in new Balance Sheet.
Anurag Pathak Changed status to publish July 2, 2023
