Partnership

Accounting

Medium

common

Varun, Vansh and Vinay are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of Workmen Compensation Reserve existing in the balance sheet on that date when further information is not available.

Distributed among partners in their capital ratio

Distributed among partners in their new profit sharing ratio

Distributed among partners in their old profit sharing ratio

Carried forward to new balance sheet

✅ Correct Option: 3

With no claim against it, the whole Workmen Compensation Reserve is a free reserve earned before the change. It is therefore credited to all partners in their old profit sharing ratio of $5:3:2$ , so that no partner gains or loses from the change in ratio.

2025: 22 May Shift 1

Ram and Laxman started business on 1st Jan 2020 with a capital of Rs 1,20,000 and Rs 80,000 respectively. Ram introduced Rs. 50,000 to the firm on 1st July 2020 as additional capital. If the rate of interest is 15% p.a. Assuming that accounts are closed as per calender year then the Interest payable to Ram on Capital would be:

2026: 29 May Shift 1

Under the Fluctuating Capital Method, how many accounts are prepared for all adjustments like undistributed profits, reserves, etc. related to partners?

2025: 14 May Shift 1

Which of the following is the feature of fluctuating capital:

2026: 20 May Shift 1

Match List-I with List-II

List-I	List-II
(A) Intangible assets should be written off as early as possible but not exceeding its estimated life in ......... years	(I) 4
(B) AS .....deals with intangible assets	(II) 10
(C) In the absence of any agreement, Section ...... of the Indian Partnership Act, 1932 is applicable, which states that the retiring partner has an option to receive either interest @ 6% p.a. till the date of payment or such share of profits which has been earned with his/her money (i.e., based on capital ratio).	(III) 26
(D) Section ...... of the Indian Partnership Act 1932 defines partnership.	(IV) 37

Choose the correct answer from the options given below:

2025: 27 May Shift 2

Which of the following statements relates to Fixed Capital Method?

(A) The capitals of the partners shall remain fixed unless additional capital is introduced or capital is withdrawn.

(B) All items like share of profit or loss, interest on capital, drawings, interest on drawings, etc. are recorded in Partner's Current Account.

(D) The partners' current account may show a debit or a credit balance.

Choose the correct answer from the options given below:

2026: 31 May Shift 1

Which of the following is not a feature of partnership ?

Varun, Vansh and Vinay are partners sharing profits in the ratio of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of Workmen Compensation Reserve existing in the balance sheet on that date when further information is not available.

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