Question 11:
Nitya and
Anand are partners in a firm sharing profits
and losses in the ratio of 3 : 2. With effect from 1st
April, 2024, they decided to share future profits equally. On the date of
change in the profit-sharing ratio, the Profit and Loss Account showed a credit
balance of ` 1,50,000.
Record the necessary Journal entry for the distribution of the balance in the
Profit and Loss Account immediately before the change in the profit-sharing
ratio.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
2024 |
|
|
|
|
|
|
|
To Nitya’s Capital A/c |
|
|
|
90,000 |
|
|
To Anand’s Capital A/c |
|
|
|
60,000 |
|
|
(Being
Adjustment of balance in P&L A/c in old ratio) |
|
|
|
|
Working Notes:
WN1 Calculation
of Share of Profit and Loss A/c
Nisha's share=1,50,000×3÷5=90,000
Anand's share=1,50,000×2÷5=60,000
Question 12:
Om and Shiv are partners in a firm sharing profits in the ratio of
4 : 1. They decided to share future profits in the
ratio of 3 : 2 w.e.f. 1st
April, 2024. On that day, Profit and Loss Account showed a debit balance of ` 1,00,000.
Pass Journal entry to give effect to the above.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
2024 |
|
|
|
|
|
|
April 1 |
Om’s Capital A/c |
Dr. |
|
80,000 |
|
|
|
Shiv’s
Capital A/c |
Dr. |
|
20,000 |
|
|
|
To Profit & Loss A/c |
|
|
|
1,00,000 |
|
|
(Being Profit
& Loss distributed) |
|
|
|
|
|
|
|
|
|
|
|
Question 13:
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 information is given; (ii) there is no claim
against it.
Answer:
(i)
& (ii)
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
|
|
|
|
|
|
|
Workmen
Compensation Reserve A/c |
Dr. |
|
1,20,000 |
|
|
|
To A’s Capital A/c |
|
|
|
60,000 |
|
|
To B’s Capital A/c |
|
|
|
36,000 |
|
|
To C’s Capital A/c |
|
|
|
24,000 |
|
|
(Being Workmen
Compensation Reserve distributed) |
|
|
|
|
Note:
In the both the cases, Workmen Compensation Reserve should be distributed in old ratio i.e., 5:3:2.
Question 14:
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.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
|
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 |
|
|
(Being
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=40,000×5/10=20,000
Y's share=40,000×3/10=12,000
Z's share=40,000×2/10=8,000
Question 15:
Ashok, Bhim and Chetan 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, 2024.
Workmen Compensation Reserve appears at ` 1,20,000 in the Balance Sheet as at 31st March, 2024 and
Workmen Compensation Claim is estimated at ` 1,50,000. Pass Journal entries for the accounting treatment
of Workmen Compensation Reserve.
Answer:
|
Journal |
|||||
|
Date |
Particulars |
L.F. |
Debit ( `) |
Credit ( `) |
|
|
2024 |
|
|
|
|
|
|
|
Workmen
Compensation Reserve A/c |
Dr. |
|
1,20,000 |
|
|
|
Revaluation A/c |
Dr. |
|
30,000 |
|
|
|
To Provision for Workmen Compensation Claim A/c |
|
|
|
1,50,000 |
|
|
(Being Provision
created and shortfall charged to Revaluation A/c) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Ashok’s Capital
A/c |
Dr. |
|
15,000 |
|
|
|
Bhim’s Capital A/c |
Dr. |
|
9,000 |
|
|
|
Chetan’s Capital A/c |
Dr. |
|
6,000 |
|
|
|
To Revaluation A/c |
|
|
|
30,000 |
|
|
(Being Loss on
revaluation transferred to Partners’ Capital A/c) |
|
|
|
|
Ts Grewal Solution 2024-2025
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Class 12 / Volume – I