Question

Capital A/c by €45.000.)
Q. 26. A and B sharing profits and losses in the ratio of 2:3. decide to share future
profits and losses equally with effect from 1st April, 2021. An extract of their Balance
Sheel as at 31st March, 2021 is as follows:
Liabilities
Assets
40.000
workmen Compensation Reserve
Show the accounting treatment under the following alternative cases:
Case (i) If there is no other information,
Case (11) If a claim on account of workmen's compensation is estimated at
825,000
Case (iii) If a claim on account of workmen's compensation is estimated at
740,000
Case (iv) If a claim on account of workmen's compensation is estimated at
750,000.
(Ans.
Case (1) Cr. A's Capital A/c by 16,000 and B's Capital A/c by 24,000
Case (ii) Cr. A's Capital A/c by 6,000 and B's Capital A/c by 9,000
Case (iii) Entire amount of Workmen Compensation Reserve will be
Credited to Provision for Workmen Compensation Alc
Case (iv) Loss on Revaluation 10,000; Debit A's Capital A/c by 34,000
and B's Capital A/c by 6,000.​

Answer 1

Answer:

you should have 200 points for this question