27 :- X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3:2:1. Z retired from the firm on 1st April 2025. On the date of Z’s retirement, following balances existed in the books of the firm:
General reserve Rs 1,80,000
Profit and loss account (Dr.) Rs 30,000
Workmen compensation reserve Rs 24,000 which was no more required
Employees provident Fund Rs 20,000
Pass the necessary journal entries for the adjustment of these items on Z’s retirement.
Solution :-
