At the time of admission of partner, Workmen Compensation Claim Exceeding Workmen Compensation Fund is transferred to:
Answer & explanation
Correct answer: option 3
The correct answer is option 3- Debit of revaluation account.
At the time of admission of partner, Workmen Compensation Claim Exceeding Workmen Compensation Fund is transferred to Debit of revaluation account.
Excess of claim over reserve is a liability for the firm which is a loss for the firm so it is debited to revaluation account.