X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retired from the firm on 1st April, 2022. On the date of Z’s retirement, following existed in the books of the firm: General Reserve – ₹ 1,80,000 Profit & Loss Account (Dr.) – ₹ 30,000 Workmen Compensation Reserve – ₹ 24,000 which was no more required Employee’s Provident Fund – ₹ 20,000. Pass necessary Journal entries for the adjustment of these items on Z’s retirement.
X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retired from the firm on 1st April, 2022. On the date of Z’s retirement, following existed in the books of the firm:
General Reserve – ₹ 1,80,000
Profit & Loss Account (Dr.) – ₹ 30,000
Workmen Compensation Reserve – ₹ 24,000 which was no more required
Employee’s Provident Fund – ₹ 20,000.
Pass necessary Journal entries for the adjustment of these items on Z’s retirement.
Anurag Pathak Changed status to publish June 20, 2023
