If there is no claim against Workmen Compensation Reserve, it is _______________ at the time of admission of a partner.Fill in the blank with the correct answer from the options given below.
- ADebited to old partners' capital account
- BCredited to all partners' capital accounts
- CCredited to old partners' capital accounts
- DDebited to all partners' capital accounts
Solution & Step-by-step Explanation
When a new partner is admitted, any accumulated reserves or unutilized safety funds, such as a Workmen Compensation Reserve with zero claims against it, belong entirely to the period before admission. Therefore, it must be credited to old partners' capital accounts in their old profit-sharing ratio.