Question

Workman compensation Reserve (WCR) appears in the balance sheet of rashmi and suman, who share profits in the ratio of 2:3 at ₹ 80,000. deepa is admitted and the new profit sharing ratio is 1:1:1. if the claim on account of WCR is estimated at ₹ 1,00,000, then​

Answer 1

Answer:

Solution

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Verified by Toppr

(i) Workmen Compensation Reserve a/c.... Dr 72000

To Workmen Compensation Claim a/c 48000

To X's Capital a/c 12000

To Y's Capital a/c 12000

(Being adjustment of workmen compensation reserve partly for the claim and rest in the ratio of 1:1)