CBSE (Arts) Class 12CBSE
Share
Notifications

View all notifications

X, Y And Z Who Are Presently Sharing Profits and Losses in the Ratio of 5 : 3 : 2 - CBSE (Arts) Class 12 - Accountancy

Login
Create free account


      Forgot password?

Question

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.

Solution

Journal

Date

Particulars

L.F.

Debit

Amount

(Rs)

Credit

Amount

(Rs)

 

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

 

(Adjustment of balance in Workmen Compensation Reserve A/c in old ratio)

 

 

 

Working Notes:

WN1 Calculation of Share of Workmen Compensation Reserve

X's share = `40,000 xx 5/10 = 20,000`

Y's share = `40,000 xx 3/10 = 12,000`

Z's share = `40,000 xx 2/10 = 8,000`

  Is there an error in this question or solution?

APPEARS IN

Solution X, Y And Z Who Are Presently Sharing Profits and Losses in the Ratio of 5 : 3 : 2 Concept: Retirement and Death of a Partner - Calculation of New Profit Sharing Ratio.
S
View in app×