how workmen compensation fund is treated if there is a liability in adj towards it

just subtract the liability from fund and distribute it among partners in their capital a/c in profit sharing ratio

  • -3

liability i.e. claim is shown in balance and rest is distributed among old partners in old ratio

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,,, if wc is given in balance sheet nd a claim is also given in additional information(which is less than wc reserve) den d difference is credited to partners capital a/c and d amt. of claim is shown in d liabilities side of balance sheet...

but if wc reserve is less than claim or liability given in additional information den d difference is debited to revaluation a/c and d amt of claim is shown in d liabilities side of balance sheet........:))

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read the book properly 
  • -8
The amount of claim is always shown in the liability side of the balance sheet
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Here is the answer

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The liability amount is shown in balance sheet liability side and rest of the fund willbe shared among partners
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No treatment A/C
And revaluation a/ is liabilty for business so it will be showed in balance sheet only
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