1. Mohan and Sohan are partners
with ratio 2:1.Meena is admitted
as new partner for 1/4th share
Mohan and Sohan are
partners with ratio
2:1.Meena is admitted as
new partner for 1/4th
share
Balance Sheet (Old)
Liabilities Amount Assets Amount
Treatment of Workmen Compensation Fund
Case 1 - Claim on
account of workmen
compensation is `40,000
 Keep `40,000 aside to be
shown in new Balance
sheet Liability side
 Distribute remaining
`30,000 among old
partners in old ratio
Workmen compensation Reserves A/c Dr 70,000
To claim for workmen compensation A/c 40,000
To Mohan’s Capital A/c 20,000
To Sohan’s Capital A/c 10,000
Case 2 - Claim on
account of workmen
compensation is` 70,000
 Keep ` 70,000 aside to
be shown in new Balance
sheet Liability side
 Nothing is left to
Distribute among old
partners in old ratio
Workmen compensation Reserves A/c Dr 70,000
To claim for workmen compensation A/c 70,000
Case 3 - There is no
Claim on account of
workmen compensation
 No need to Keep Anything
aside
 Distribute whole amount
(`70,000) among old partners
in old ratio
Workmen compensation Reserves A/c Dr 70,000
To Mohan’s Capital A/c 46667
To Sohan’s Capital A/c 3333
Case 4 - Claim on
account of workmen
compensation is
`1,00,000
 Keep ` 1,00,000 aside to
be shown in new Balance
sheet Liability side
 Nothing is left to be
distributed
 Old partner will have to
bear loss of `30,000 in old
ratio
Workmen compensation Reserves A/c Dr 70,000
Revaluation A/c Dr. 30,000
To claim for workmen compensation A/c 100,000
Mohan’s Capital A/c Dr. 20,000
Sohan’s Capital A/c Dr. 10,000
To Revaluation 30,000
Investment Fluctuation Fund
Investment Fluctuation Fund is made to face the loss due to decrease in value of Investment
Balance Sheet (Old)
Treatment of Investment Fluctuation Fund
Case 1-Market value of
Investment
Is `27,000
There is loss ` 3,000 for
which we will use fund
Remaining fund (21000 –
3000 =18000) is distributed
among old partners in old
ratio
Investment Fluctuation Fund A/c Dr 21,000
To Investment A/c 3,000
To Mohan’s Capital A/c 12,000
To Sohan’s Capital A/c 6,000
Case 2-Market value of
Investment
Is ` 32,000
No need to use This fund
Distribute whole fund of `
21,000 among old partner in
old ratio
Investment Fluctuation Fund A/c Dr 21,000
To Mohan’s Capital A/c 14000
To Sohan’s Capital A/c 7000
Case 2-Market value of
Investment
Is ` 30,000
No need to use This fund
Distribute whole fund of `
21,000 among old partner in
Investment Fluctuation Fund A/c Dr 21,000
To Mohan’s Capital A/c 14000
To Sohan’s Capital A/c 7000
Workmen
compensation Fund
70,000
Liabilities Amount Assets Amount
Investment Fluctuation
Fund
21,000
Investment 30,000

2. old ratio