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Standard XII

Accountancy

Realisation of Assets (Dissolution)

The workmen c...

Question

The workmen compensation reserve has a balance of Rs. 70,000 and a claim of Rs. 10,000. So, rupees can be transferred to realisation account.

60000

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70000

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80000

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10000

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Solution

The correct option is D 10000
The workmen compensation reserve has a balance of Rs. 70,000 and a claim of Rs. 10,000. So, Rs. 10,000 can be transferred to realisation account by debiting workmen compensation reserve account and crediting realisation account.

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Similar questions

Q. The workmen compensation reserve has a balance of Rs.70,000 and a claim of Rs.10,000. So, rupees can be transferred to partner's capital account

Lavanya and Priya were partners sharing profits in the ratio of 2 : 1. Pass journal entries for the following transactions at the time of dissolution firm:

(i) Workmen Compensation Reserve stood Rs 1,50,000 in the Balance Sheet and there was no liability towards Workmen Compensation.

(ii) Workmen Compensation Reserve stood at Rs 1,50,000 in the Balance Sheet and liability in respect of it was ascertained at Rs 90,000.

(iii) Workmen Compensation Reserve stood at Rs 1,50,000 in the Balance Sheet and liability in respect of it was ascertained at Rs 1,50,000.

(iv) Workmen Compensation Reserve stood at Rs 1,50,000. In the Balance Sheet and liability in respect of it was ascertained at Rs 2,00,000.

(v) There was no Workmen Compensation Reserve in the Balance Sheet and firm had to pay Rs 40,000 as compensation to the workers.

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

X, Y

and

Z

who are sharing profits and losses in the ratio of

5 : 3 : 2

decide to share future profits and losses in the ratio of

2 : 3 : 5

with effect from

1 s t

April,

2018

. Workmen Compensation Reserve appears at Rs.

1, 20, 000

in the Balance Sheet as on

31 s t

March,

2018

and Workmen Compensation Claim is estimated at Rs.

1, 50, 000

Pass Journal entries for the accounting treatment of Workmen Compensation Reserve.

A, B and C are partners sharing profits and losses in the ratio of 2:2:1. They admitted D for $\frac{1}{4} t h$ share with effect from 1st April, 2017. An extract of their Balance Sheet as at 31st March, 2017 is as follows:

$\begin{matrix} Capital and Liabilities & Rs & Assets & Rs Workmen Compensation Reserve & 80, 000 \end{matrix}$

Show the accounting treatment under the following alternative cases:

Case 1. If then is no other information.

Case 2. If a claim for workmen compensation is estimated at Rs 50,000.

Case 3. If a claim for workmen compensation is estimated at Rs 80,000.

Case 4. If a claim for workmen compensation is estimated at Rs 1,00,000.

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The workmen compensation reserve has a balance of Rs. 70,000 and a claim of Rs. 10,000. So, rupees can be transferred to realisation account.

The correct option is D 10000The workmen compensation reserve has a balance of Rs. 70,000 and a claim of Rs. 10,000. So, Rs. 10,000 can be transferred to realisation account by debiting workmen compensation reserve account and crediting realisation account.

The correct option is D 10000
The workmen compensation reserve has a balance of Rs. 70,000 and a claim of Rs. 10,000. So, Rs. 10,000 can be transferred to realisation account by debiting workmen compensation reserve account and crediting realisation account.