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

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)

• 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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