Multiple choice

The liability of Workmen's Compensation Reserve is Rs. 16000 and on admission of a partner, it is determined at Rs. 12000. Rs. 4000 would be credited in

  1. revaluation A/c

  2. realisation A/c

  3. all partners' capital A/c

  4. old partners' capital A/c

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

It is directly transferred to the old partner's capital A/c. Since, he has contributed to it.