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Question : A, B and C are partners sharing profits and losses in the ratio of 2: 2: 1.15th March, A died and the new ratio between B and Cis agreed at 3: 2. Give journal entries on A's death in the following cases
Question:
Workmen Compensation Reserve appears in the books at Rs. 1,20,000 and there is a claim of Rs. 1,50,000 against it.:

Option 1: Revaluation Loss of Rs. 30,000 will be debited to A, B and C in 2: 2: 1.

Option 2: Revaluation Loss of Rs. 30,000 will be debited to B and C in 2: 1.

Option 3: Revaluation profit of Rs. 30,000 will be credited to A, B and C in 2: 2: 1.

Option 4: None of the above


Team Careers360 12th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Revaluation profit of Rs. 30,000 will be credited to A, B and C in 2: 2: 1.


Solution : Answer = Revaluation profit of Rs. 30,000 will be credited to A, B and C in 2: 2: 1.

Revaluation a/c.......Dr 30,000
Workmen compensation reserve a/c ......Dr 1,20,000
To Claim for compensation a/c 1,50,000.

A's capital a/c.....Dr 12,000
B's capital a/c.....Dr 12,000
C's capital a/c.....Dr 6,000
To Revaluation(loss) a/c 30,000
(2:2:1)
Hence, the correct option is 3.

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