A and B sharing profits and losses in the ratio of 2 : 3 decide to share future profits and losses equally with effect from 1st April, 2024. An extract of their Balance Sheet as at 31st March, 2024 is as follows
Solution:- In the absence of further information Workmen Compensation Reserve is credited to the partners in their old profit sharing ratio. In the absence of further information Workmen Compensation Reserve is credited to the partners in their old profit sharing…