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Based on the below information, answer the given questions:
Aditi and Parul are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3 : 1. On 1st April, 2017, they admitted Chanda into their partnership with 1/5th share in the profits. Chanda brings in ₹40,000 as her capital and her share of goodwill in cash. Her share of goodwill is calculated on the basis of her capital contribution and her share of profits in the firm. At the time of Chanda’s admission :
(a) The firm had a Workmen Compensation Reserve of ₹ 60,000 against which there was a claim of ₹ 20,000.
(b) Creditors of ₹ 8,000 were paid by Aditi privately for which she is not to be reimbursed.
(c) There was no change in the value of other assets and liabilities.
How much amount of the workmen compensation reserve will be transferred to Parul’s Capital Account?
  • a)
    ₹30,000
  • b)
    ₹10,000
  • c)
    ₹15,000
  • d)
    ₹20,000
Correct answer is option 'B'. Can you explain this answer?
Most Upvoted Answer
Based on the below information, answer the given questions:Aditi and ...
Calculation of Amount transferred to Parul's Capital Account:
To calculate the amount of workmen compensation reserve to be transferred to Parul's Capital Account, we need to follow the steps below:

Determine the Total Workmen Compensation Reserve:
- Total Workmen Compensation Reserve = ₹60,000

Calculate Chanda's Share of Workmen Compensation Reserve:
- Chanda's share of profits = 1/5
- Chanda's share of Workmen Compensation Reserve = Chanda's share of profits * Total Workmen Compensation Reserve
- Chanda's share of Workmen Compensation Reserve = 1/5 * ₹60,000 = ₹12,000

Calculate Parul's Share of Workmen Compensation Reserve:
- Parul's share of profits = 1 - Chanda's share of profits = 1 - 1/5 = 4/5
- Parul's share of Workmen Compensation Reserve = Parul's share of profits * Total Workmen Compensation Reserve
- Parul's share of Workmen Compensation Reserve = 4/5 * ₹60,000 = ₹48,000

Amount to be transferred to Parul's Capital Account:
- Amount to be transferred to Parul's Capital Account = Parul's share of Workmen Compensation Reserve - Claim amount
- Amount to be transferred to Parul's Capital Account = ₹48,000 - ₹20,000 = ₹28,000
Therefore, the amount of workmen compensation reserve to be transferred to Parul's Capital Account is ₹28,000.
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Community Answer
Based on the below information, answer the given questions:Aditi and ...
1/4 of (₹60,000 – ₹20,000) = ₹10,000
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Based on the below information, answer the given questions:Aditi and Parul are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3 : 1. On 1st April, 2017, they admitted Chanda into their partnership with 1/5th share in the profits. Chanda brings in ₹40,000 as her capital and her share of goodwill in cash. Her share of goodwill is calculated on the basis of her capital contribution and her share of profits in the firm. At the time of Chanda’s admission :(a) The firm had a Workmen Compensation Reserve of ₹ 60,000 against which there was a claim of ₹ 20,000.(b) Creditors of ₹ 8,000 were paid by Aditi privately for which she is not to be reimbursed.(c) There was no change in the value of other assets and liabilities.How much amount of the workmen compensation reserve will be transferred to Parul’s Capital Account?a)₹30,000b)₹10,000c)₹15,000d)₹20,000Correct answer is option 'B'. Can you explain this answer?
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Based on the below information, answer the given questions:Aditi and Parul are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3 : 1. On 1st April, 2017, they admitted Chanda into their partnership with 1/5th share in the profits. Chanda brings in ₹40,000 as her capital and her share of goodwill in cash. Her share of goodwill is calculated on the basis of her capital contribution and her share of profits in the firm. At the time of Chanda’s admission :(a) The firm had a Workmen Compensation Reserve of ₹ 60,000 against which there was a claim of ₹ 20,000.(b) Creditors of ₹ 8,000 were paid by Aditi privately for which she is not to be reimbursed.(c) There was no change in the value of other assets and liabilities.How much amount of the workmen compensation reserve will be transferred to Parul’s Capital Account?a)₹30,000b)₹10,000c)₹15,000d)₹20,000Correct answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Based on the below information, answer the given questions:Aditi and Parul are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3 : 1. On 1st April, 2017, they admitted Chanda into their partnership with 1/5th share in the profits. Chanda brings in ₹40,000 as her capital and her share of goodwill in cash. Her share of goodwill is calculated on the basis of her capital contribution and her share of profits in the firm. At the time of Chanda’s admission :(a) The firm had a Workmen Compensation Reserve of ₹ 60,000 against which there was a claim of ₹ 20,000.(b) Creditors of ₹ 8,000 were paid by Aditi privately for which she is not to be reimbursed.(c) There was no change in the value of other assets and liabilities.How much amount of the workmen compensation reserve will be transferred to Parul’s Capital Account?a)₹30,000b)₹10,000c)₹15,000d)₹20,000Correct answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Based on the below information, answer the given questions:Aditi and Parul are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3 : 1. On 1st April, 2017, they admitted Chanda into their partnership with 1/5th share in the profits. Chanda brings in ₹40,000 as her capital and her share of goodwill in cash. Her share of goodwill is calculated on the basis of her capital contribution and her share of profits in the firm. At the time of Chanda’s admission :(a) The firm had a Workmen Compensation Reserve of ₹ 60,000 against which there was a claim of ₹ 20,000.(b) Creditors of ₹ 8,000 were paid by Aditi privately for which she is not to be reimbursed.(c) There was no change in the value of other assets and liabilities.How much amount of the workmen compensation reserve will be transferred to Parul’s Capital Account?a)₹30,000b)₹10,000c)₹15,000d)₹20,000Correct answer is option 'B'. Can you explain this answer?.
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At the time of Chanda’s admission :(a) The firm had a Workmen Compensation Reserve of ₹ 60,000 against which there was a claim of ₹ 20,000.(b) Creditors of ₹ 8,000 were paid by Aditi privately for which she is not to be reimbursed.(c) There was no change in the value of other assets and liabilities.How much amount of the workmen compensation reserve will be transferred to Parul’s Capital Account?a)₹30,000b)₹10,000c)₹15,000d)₹20,000Correct answer is option 'B'. Can you explain this answer?, a detailed solution for Based on the below information, answer the given questions:Aditi and Parul are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3 : 1. On 1st April, 2017, they admitted Chanda into their partnership with 1/5th share in the profits. Chanda brings in ₹40,000 as her capital and her share of goodwill in cash. Her share of goodwill is calculated on the basis of her capital contribution and her share of profits in the firm. At the time of Chanda’s admission :(a) The firm had a Workmen Compensation Reserve of ₹ 60,000 against which there was a claim of ₹ 20,000.(b) Creditors of ₹ 8,000 were paid by Aditi privately for which she is not to be reimbursed.(c) There was no change in the value of other assets and liabilities.How much amount of the workmen compensation reserve will be transferred to Parul’s Capital Account?a)₹30,000b)₹10,000c)₹15,000d)₹20,000Correct answer is option 'B'. Can you explain this answer? has been provided alongside types of Based on the below information, answer the given questions:Aditi and Parul are partners in a firm with capitals of ₹ 35,000 each. They shared profits and losses in the ratio of 3 : 1. On 1st April, 2017, they admitted Chanda into their partnership with 1/5th share in the profits. Chanda brings in ₹40,000 as her capital and her share of goodwill in cash. 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