X Y and Z who are sharing profits in the ratio of 5 3 2 decide to share profits in the ratio of 2 3 ......

X, Y and Z who are sharing profits in the ratio of 5 : 3 : 2, decide to share profits in the ratio of 2 : 3 : 5 with effect from 1st April, 2019. Workmen Compensation Reserve appears at 1,20,000 in the Balance Sheet as at 31st March, 2019 and Workmen Compensation Claim is estimated at 1,50,000. Pass Journal entries for the accounting treatment of Workmen Compensation Reserve.

By: Aman