A, B and C 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: i) No other information is given ii) there is no claim against it.
A, B and C 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:
i) No other information is given
ii) there is no claim against it.
Anurag Pathak Changed status to publish April 29, 2023
Solution:-
https://ask.commerceschool.in/wp-content/uploads/2023/04/1-218.webp
https://ask.commerceschool.in/wp-content/uploads/2023/04/2-118.webp
Case – 2
When there is no claim against the Workmen Compensation reserve, the entry would be the same as given
Anurag Pathak Changed status to publish April 29, 2023
