Question

7. A Firm of partner X and Y sharing profit in 2:1 ratio was dissolved. The firm has the
following position :
BALANCE SHEET (LIABILITIES SIDE)
Workmen Compensation Fund
30.000
Additional Information:
Case (a): There is no liability against this fund.
Case (b) : Claim of 12,000 is payable to workers as compensation against this fund.
Show the accounting treatment in journal.
2 M ARKS​

Answer 1

Answer:

case (a)

Workmen compensation fund Dr 30000

To X's capital a/c. 20000

To Y's capital a/c. 10000

case (b)

Workmen compensation fund Dr. 30000

To Realisation a/c. 12000

To X's capital a/c. 12000

To Y' s capital a/c. 6000

Realisation a/c. Dr. 12000

To Bank a/ c. 12000