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

ConceptRetirement and Death of a Partner - Calculation of New Profit Sharing Ratio

#### 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.
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