X, Y and Z who are presently sharing profits and losses in the ratio of 5 : 3 : 2 decide to share future profits and losses in the ratio of 2 : 3 : 5 . with effect from 1st April, 2018. Workmen Compensation Reserve appears at Rs. 1,20,000 in the Balance Sheet as at 31st March, 2018 and Workmen Compensation Claim is estimated at Rs. 1,50,000. Pass journal entries for the accounting treatment of Workmen Compensation Reserve.
