Question 15 Chapter 4 of +2-A - T.S. Grewal 12 Class Part

Question 15 Chapter 4 of +2-A

Table of Contents

The solution of Question 15 Chapter 4 of +2-A

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

15. 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 ‘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.

The solution of Question 15 Chapter 4 of +2-A

In the Books of _______________
Date	Particulars		L.F.	Debit	Credit

	Workmen Compensation Reserve A/c	Dr		1,20,000
	To X’s Capital A/c				20,000
	To Y’s Capital A/c				12,000
	To Z’s Capital A/c				8,000
	To Workmen Compensation Claim A/c				80,000
	(Being Adjustment for Workmen Compensation Reserve.)

Working Note :

Calculation of Balance available for partners of Workmen Compensation Reserve

Balance of W. C. R.	=	1,20,000 – 80,000
	=	40,000

Amount to be Credited to X’s Capital	=	40,000	X	5
				10
	=	20,000

Amount to be Credited to Y’s Capital	=	40,000	X	3
				10
	=	12,000

Amount to be Credited to Z’s Capital	=	40,000	X	2
				10
	=	8,000

T.S. Grewal’s Double Entry Book Keeping +2 (Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms)

Chapter No. 1 – Financial Statement of Not-For-Profit Organisations
Chapter No. 2 – Accounting for Partnership Firms – Fundamentals
Chapter No. 3 – Goodwill: Nature and Valuation
Chapter No. 4 – Change in Profit-Sharing Ratio Among the Existing Partners
Chapter No. 5 – Admission of a Partner
Chapter No. 6 – Retirement/Death of a Partner
Chapter No. 7 – Dissolution of a Partnership Firm

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Chapter No. 8 – Company Accounts – Accounting for Share Capital
Chapter No. 9 – Company Accounts – Issue of Debentures
Chapter No. 10 – Redemption of Debentures

T.S. Grewal’s Double Entry Book Keeping (Vol. II: Accounting for Companies)

Chapter No. 1 – Financial Statements of a Company
Chapter No. 2 – Financial Statement Analysis
Chapter No. 3 – Tools of Financial Statement Analysis – Comparative Statements and Common- Size Statements
Chapter No. 4 – Accounting Ratios
Chapter No. 5 – Cash Flow Statement

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