Give the Journal entry in the following cases:

  • To distribute ‘Workmen Compensation Reserve’ of ₹ 90,000 at the time of admission of R, when there is no claim against it. The firm has two partners P and Q.
  • To distribute ‘Investment Fluctuation Reserve’ if ₹ 60,000 at the time of admission of R, when is a claim of ₹60,000 against it. The firm has two partners, P and Q.
  • To distribute ‘Investment Fluctuation Reserve’ of ₹ 60,000 at the time of admission of R, when Investments (market value ₹ 2,85,000) exists at ₹ 3,00,000. The firm has two partners, P and Q.
  • To distribute ‘General Reserve’ of ₹ 60,000 at the time of admission of R, when ₹ 15,000 from General Reserve is to be transferred to Investment Fluctuation Reserve. The firm has two partners, P and Q.

Solution :