Question 15 Chapter 4 of +2-A – T.S. Grewal 12 Class Part – A Vol. 1

Question 15 Chapter 4 of +2-A

Question 15 Chapter 4 of +2-A

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
2019          
April 1 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)

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

 

Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication

2 Book 1 min - Question 15 Chapter 4 of +2-A - T.S. Grewal 12 Class Part - A Vol. 1
Vol. I: Accounting for Not-for-Profit Organizations and Partnership Firms

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