Question 16 Chapter 4 of +2-A - T.S. Grewal 12 Class Part

Question 16 Chapter 4 of +2-A

Table of Contents

The solution of Question 16 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)

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
31^st 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 :

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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

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