At the time of reconstitution of the partnership firm, what will be the effect of the following information?
Balance in Workmen Compensation Reserve: Rs. 40,000.
Claim for Workmen Compensation: Rs. 45,000.
1
₹45,000 Debited to the Partner’s capital Accounts.
2
₹40,000 Debited to Revaluation Account.
3
₹5,000 Debited to Revaluation Account.
4
₹5,000 Credited to Revaluation Account.