On the death of a partner, the remaining balance in workmen compensation reserve is transferred to partner's capital account in their ratio.

old

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new

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gaining

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sacrificing

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Solution

The correct option is A old
Workmen compensation reserve is set aside out of profit for meeting any accidental loss to workers. So after paying all the liability regarding workmen compensation, the remaining balance is transferred to the partner's capital account in old ratio.

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Similar questions

Transfer of Workmen Compensation Reserve is shown in which side of partner's capital accounts?

After transferring the general reserve to partners' capital account, will it be shown in the balance sheet?

Reserve shown in the Balance sheet are transferred to the credit side of capital accounts at the time of retirement of a partner

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