Practicing Success
At the time of admission of a new partner, there was a balance in the Workmen compensation Reserve of Rs 30,000. The liability of the workmen's compensation reserve was revalued at 10,000. How much amount will be distributed among the old partners? |
10,000 - Debit 10,000 - Credit 20,000 Debit 20,000 - Credit |
20,000 - Credit |
30,000 - 10,000 = 20,000 will be credited in old ratio to old partner's capital account. |