1.

X Y and Z are partners sharing profits and losses in the ratio 5 : 3 : 2. They decide to share the future profits in the ratio 3 : 2 : 1. Workmen compensation reserve appearing in the balance sheet on the date, if no information is available for the same,will be : i Distributed to the partners in old profit sharing ratio ii Distributed to the partners in new profit sharing ratio iii Distributed to the partners in capital ratio iv Carried forward to new balance sheet without any adjustment

Answer»

Correct option is i Distributed to the partners in old profit sharing ratio



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