1.

X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retires from the firm on 31st March, 2019. On the date of Z's retirement, the following balances appeared in the books of the firm: General Reserve ₹ 1,80,000 Profit and Loss Account (Dr.) ₹ 30,000 Workmen Compensation Reserve ₹ 24,000 which was no more required Employees' Provident Fund ₹ 20,000. Pass necessary Journal entries for the adjustment of these items on Z's retirement.

Answer» X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retires from the firm on 31st March, 2019. On the date of Z's retirement, the following balances appeared in the books of the firm:

General Reserve ₹ 1,80,000

Profit and Loss Account (Dr.) ₹ 30,000

Workmen Compensation Reserve ₹ 24,000 which was no more required

Employees' Provident Fund ₹ 20,000.

Pass necessary Journal entries for the adjustment of these items on Z's retirement.


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