Question

Q. 9. Satish and Taruna were partners in a firm sharing profits and losses in the ratio of 3 : 2. From 1st
April, 2018 they decided to share profits equally. On that date their Balance Sheet showed a
credit balance of 35,000 in workmen compensation fund and 40,000 in general reserve. The
goodwill of the firm on that date was valued at * 50,000. The firm accepted a claim of 40,000 for
workmen compensation.
Pass necessary journal entries for the above transactions on the reconstitution of the firm​

Answer 1

Answer:

Explanation :

                      Journal Entries                                                                            

Genaral  reserve A/c   40000

  To Satish a/c                              24000

  To tarun 's A/c                            16000

Workmen compensation a/c     35000

Revaluation A/c                             5000

  To Workmen compensation claim              40000                  

Satish A/c                    3000

Tarun's A/c                  2000

   To Revaluation A/c                 5000

Tarun's capital   5000

   To satish A/c                 5000