X, Y and Z are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Z retired from the firm on 1st April, 2022. On the date of Z’s retirement, following balances existed in the books of the firm.
General Reserve – ₹ 1,80,000
Profit & Loss Account (Dr.) ₹ 30,000
Workmen Compensation Reserve ₹ 24,000 which was no more required
Employee’s Provident Fund ₹ 20,000.
Pass Necessary Journal entries for the adjustment of these items on Z’s retirement.
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