Advertisement suspense account | Rs. 25,000 |
Contingency reserve | Rs. 15,000 |
Workmen's compensation reserve | Rs. 20,000 |
Loss in business account | Rs. 15,000 |
Answer:
JOURNAL
Values associated with the partners are: (i) Preparing for Future Partners have prepared for future by creating reserves. (ii) Honesty and Transparency Continuing partners have shown honesty and transparency by sharing accumulated profits and losses with the outgoing partner. Date Particulars LF Amt (Dr) Amt (Cr) 2017 Mar 31 Contingency Reserve A/c Dr 15,000 Workmen?s Compensation Reserve A/c Dr 20,000 To X?s Capital A/c 14,000 To Y?s Capital A/c 14,000 To Z?s Capital A/c 7,000 (Being the contingency reserve and workmen?s compensation reserve transferred to capital accounts on Y?s retirement) Mar 31 X?s Capital A/c Dr 16.000 Y?s Capital A/c Dr 16,000 Z?s Capital A/c Dr 8,000 To Advertisement Suspense A/c 25,000 To Loss in Business A/c 15,000 (Being the amount of advertisement suspense account and loss in business account transferred to capital accounts on Y?s retirement)
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