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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
X, Y and Z, who are presently sharing profits and losses in the ratio of 5 : 3 : 2, decide to share future profits and losses in the ratio of 2 : 3 : 5. Give the Journal entry to distribute the ‘Workmen Compensation Reserve’ of ₹1,20,000 at the time of change in profit-sharing ratio, when there is a claim of ₹80,000 against it.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| Workmen Compensation Reserve A/c Dr. | 1,20,000 | |||
| To Workmen Compensation Claim A/c | 80,000 | |||
| To X’s Capital A/c | 20,000 | |||
| To Y’s Capital A/c | 12,000 | |||
| To Z’s Capital A/c | 8,000 | |||
| (Claim provided; balance ₹40,000 distributed in the old ratio 5 : 3 : 2) |
Accounting & Commerce Educator
Sarbjit Singh holds a B.Com and M.Com degree and has over 12 years of teaching experience in double entry bookkeeping, financial accounting, and business studies.
This guide covers "T.S. Grewal Class 12 Chapter 3 Q.15 - Change in Profit-Sharing Ratio Among the Existing Partners", focusing on key definitions, step-by-step concepts, applications, and revision guidelines relevant to Chapter 3 - Change in Profit-Sharing Ratio Among the Existing Partners.
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