Question

Lavanya and Priya were partners sharing profits in the ratio of 2 : 1. Pass journal
entries for the following transactions at the time of dissolution of firm:
Workmen Compensation Reserve stood at 1.50,000 in the Balance Sheet and
there was no liability towards Workmen Compensation.​

Answer 1

Answer:          Reconstitution of a Partnership Firm - Retirement / Death of a Partner ... Give the Journal entry to distribute "Workmen Compensation Reserve" of Rs.72,000 at the time of admission of Z When there is claim of Rs.48,000 against it. ... adjustment of workmen compensation reserve partly for the claim and rest in the ratio of 1:1).

Explanation: