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✦ FREE LEARNING — CLASS 11 & 12 — CBSE · PSEB — ACCOUNTS · ECONOMICS · BST ✦
Ashok, Bhim and Chetan, who are sharing profits in the ratio of 5 : 3 : 2, decide to share profits in the ratio of 2 : 3 : 5 with effect from 1st April, 2025. Workmen Compensation Reserve appears at ₹1,20,000 in the Balance Sheet as at 31st March, 2025 and the Workmen Compensation Claim is estimated at ₹1,50,000. Pass the Journal entries for the accounting treatment of the Workmen Compensation Reserve.
JOURNAL
| Date | Particulars | L.F. | Dr. (₹) | Cr. (₹) |
|---|---|---|---|---|
| 2025 Apr 1 | Workmen Compensation Reserve A/c Dr. | 1,20,000 | ||
| Revaluation A/c Dr. | 30,000 | |||
| To Provision for Workmen Compensation Claim A/c | 1,50,000 | |||
| (Claim provided; reserve fell short by ₹30,000, charged to Revaluation A/c) | ||||
| 2025 Apr 1 | Ashok’s Capital A/c Dr. | 15,000 | ||
| Bhim’s Capital A/c Dr. | 9,000 | |||
| Chetan’s Capital A/c Dr. | 6,000 | |||
| To Revaluation A/c | 30,000 | |||
| (Loss on revaluation transferred to Capital A/cs 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.16 - 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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