Chapter 4 – Change In Profit Sharing Ratio Among The Existing Partners – TS Grewal 2022
Question 12
X Y and Z 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 workmen compensation reserve of ₹1,20,000 at the time of change in profit-sharing ratio, when there is a claim of ₹80,000 against it.
Solution:
X Y and Z who are presently sharing profits
