Satish and Taruna were partners in a firm sharing profits and losses in the ratio of 3 : 2. From 1st April, 2018 they decided to share profits equally. On that date their Balance Sheet showed a credit balance of 35,000 in workmen compensation fund and 40,000 in general reserve. The goodwill of the firm on that date was valued at Rs. 50,000. The firm accepted a claim of 40,000 for workmen compensation. Pass necessary journal entries for the above transactions on the reconstitution of the firm?.

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