Question 16 Chapter 4 of +2-A
Table of Contents
16. X, Y and Z 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, 2019. Workmen Compensation Reserve appears at 1,20,000 in the Balance Sheet as at 31st March, 2019 and Workmen Compensation Claim is estimated at 1,50,000. Pass Journal entries for the accounting treatment of Workmen Compensation Reserve.
The solution of Question 16 Chapter 4 of +2-A
| In the Books of _______________ | |||||
| Date | Particulars |
L.F. | Debit | Credit | |
| 2019 | |||||
| 31st March | Workmen Compensation Reserve A/c | Dr | 1,20,000 | ||
| Revaluation A/c | Dr | 30,000 | |||
| To Provision for W.C. Claim A/c | 1,50,000 | ||||
| (Being Adjustment for Workmen Compensation Reserve.) | |||||
| X’s Capital A/c | Dr | 15,000 | |||
| Y’s Capital A/c | Dr | 9,000 | |||
| Z’s Capital A/c | Dr | 6,000 | |||
| To Revaluation A/c | 30,000 | ||||
| (Being Adjustment for Workmen Compensation Reserve.) | |||||
Working Note :
Calculation of Balance available for partners of Workmen Compensation Reserve
| Balance of W. C. R. | = | 1,50,000 – 1,200,000 |
| = | 30,000 |
| Amount to be Credited to X’s Capital | = | 30,000 | X | 5 |
| 10 | ||||
| = | 15,000 |
| Amount to be Credited to Y’s Capital | = | 30,000 | X | 3 |
| 10 | ||||
| = | 9,000 |
| Amount to be Credited to Z’s Capital | = | 30,000 | X | 2 |
| 10 | ||||
| = | 6,000 |
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
Advertisement-X
Check out T.S. Grewal +2 Book 2020@ Official Website of Sultan Chand Publication
