Question

Identify the journal entry for the transfer of the workman compensation fund to the Partner's Capital Account at the time of change of profit-sharing ratio.

Options

• Profit and Loss Appropriation A/c   Dr.
      To Partner's Capita/Current A/c
  (Being Workmen's Compensation Fund transferred to the Partners Capital A/c).

• Profit and Loss A/c   Dr.
        To Workmen's Compensation Fund A/c
  (Being Workmen's Compensation Fund transferred to the Partners Capital A/c).

• Partner's Capita/Current A/c  Dr.
       To Workmen's Compensation Fund A/c
  (Being Workmen's Compensation Fund transferred to the Partners Capital A/c).

• Workmen's Compensation Fund A/c  Dr.
       To All Partner's Capital A/c
  (Being Workmen's Compensation Fund transferred to the Partners Capital A/c).

Answer 1

Workmen's Compensation Fund A/c  Dr.
     To All Partner's Capital A/c
(Being Workmen's Compensation Fund transferred to the Partners Capital A/c).