HomeTestsSearchRankProfile
mediumMCQCUET Accountancy 2025 2 June Shift 22026CUET Accountancy
1 mark

At the time of a partner's admission, if the actual Workmen Compensation Claim exceeds the existing Workmen Compensation Reserve, the excess amount is transferred to the:

  1. A
    Debit of partner capital account.
  2. B
    Credit of partner capital account.
  3. C
    Debit of revaluation account.
  4. D
    Credit of revaluation account.

Solution & Step-by-step Explanation

When a liability claim exceeds the dedicated provision reserve, the excess liability represents an unrecorded loss. This loss must be recognized by debiting the Revaluation Account (or Profit and Loss Adjustment Account) before being distributed among old partners.

Practice this question

Try it yourself before checking the explanation above.

At the time of a partner's admission, if the actual Workmen Compensation Claim exceeds the existing Workmen Compensation Reserve, the excess amount is transferred to the:
A
Debit of partner capital account.
B
Credit of partner capital account.
C
Debit of revaluation account.
D
Credit of revaluation account.

Share This Question

PartnershipAdmissionRevaluation Account

Related Questions

easyMCQ

Which one of the following statements is true?

easyMCQ

Which of the following statements is not correct?

easyMCQ

Which one of the following statements is correct?

easyMCQ

The product formed by the reaction of an aldehyde with a primary amine is:

easyMCQ

Which part of the tobacco plant is infected by Meloidogyne incognita?

easyMCQ

The term ecosystem was coined by:

Ready for a Full Test?

Practice with timed mock tests and track your performance across CUET Accountancy.

Browse TestsLeaderboard

Discussion