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X, Y, and Z are partners sharing profits in the ration of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of the workmen compensation reserve appearing in the balance sheet on the date when no information is available for the same?1) Distributed among the partners in their capital ratio2) Distributed among the partners in their new profit-sharing ratio3) Distributed among the partners in their old profit-sharing ratio4) Carried forward to a new balance sheet
X, Y, and Z are partners sharing profits in the ration of 5:3:2. They decided to share future profits in the ratio of 2:3:5. What will be the accounting treatment of the workmen compensation reserve appearing in the balance sheet on the date when no information is available for the same?1) Distributed among the partners in their capital ratio2) Distributed among the partners in their new profit-sharing ratio3) Distributed among the partners in their old profit-sharing ratio4) Carried forward to a new balance sheet
Distributed among the partners in their old profit-sharing ratio