Question
Accountancy Question on Reconstitution of Partnership
If there is no claim against Workmen Compensation Reserve, it is __________ at the time of admission of a partner
Fill in the blanks with the correct answer from the option given below
A
Debited to old partners' capital account
B
Credited to all partners' capital accounts
C
Credited to old partners' capital accounts
D
Debited to all partners' capital accounts
Answer
Credited to old partners' capital accounts
Explanation
Solution
If there is no claim against Workmen Compensation Reserve, the balance is transferred to the old partners' capital accounts in their profit-sharing ratio.
Hence, the correct answer is Option 3.