Question

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 Investments Fluctuation Reserve of ₹ 20,000 at the time of change in profit-sharing ratio, when investment (market value ₹ 95,000) appears in the books at ₹ 1,00,000.

Answer 1

HEY MATE YOUR ANSWER IS

6:4;8

Hope this helps

Answer 2

Workmen Compensation Reserve  should be distributed in the old ratio i.e 5:3:2 in both the cases(1) and (2)

Explanation:

Thus the workmen compensation reserve should be distributed in the old ratio(5:3:2).