[CBSE] Q. 16 Change in profit sharing ratio Solution TS Grewal Class 12 (2023-24)

Solution to Question number 16 of the Change in Profit sharing ratio chapter 4 of TS Grewal Book class 12 CBSE 2023-24 Edition.

A, B and C 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:

i) No other information is given

ii) there is no claim against it.

[Ans.: In both Cases: Dr. Workmen Compensation Reserve A/c by ₹ 1,20,000; Cr. A’s Capital A/c by ₹ 60,000; B’s Capital A/c by ₹ 36,000 and C’s Capital A/c by ₹ 24,000.]

Solution:-

Case – II

When there is no claim against the Workmen Compensation reserve, the entry would be the same as given

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