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?
Answer & explanation
Correct answer: option 4
30,000 - 10,000 = 20,000 will be credited in old ratio to old partner's capital account.