A, B and C sharing profits and losses in the ratio of 4 : 3 : 2, decided to take D as a partner for
Channel: Doubtnut
Date: 29/03/2020

A, B and C sharing profits and losses in the ratio of 4 : 3 : 2, decided to take D as a partner for 1/5th share in the firm with effect from 1st April, 2019. An extract of their Balance Sheet as at 31st March, 2019 is: Show the accounting treatment of Workmen Compensation Reserve on the admission of D under following alternative cases: Case 1. If there is no other information. Case 2. If a claim on account of workmen compensation is estimated at RS.45,000. Case 3. If a claim on account of workmen compensation is estimated at RS.99,000.