Journal Entries for X, Y and Z Partners

1. Transfer of General Reserve to Capital Accounts
General Reserve A/c Dr. 75000
To X's Capital A/c 25000
To Y's Capital A/c 15000
To Z's Capital A/c 10000
(Being General Reserve transferred to partners' capital accounts in the ratio of 5:3:2)

2. Adjustment of Advertisement Suspense A/c
Advertisement Suspense A/c Dr. 50000
To Profit and Loss A/c 50000
(Being the amount of advertisement suspense adjusted against profit and loss account)

3. Transfer of Workmen Compensation Reserve to Partners' Capital Accounts
Workmen Compensation Reserve A/c Dr. 12000
To X's Capital A/c 4000
To Y's Capital A/c 2400
To Z's Capital A/c 1600
(Being Workmen Compensation Reserve transferred to partners' capital accounts in the ratio of 5:3:2)

4. Adjustment of Profit and Loss A/c
Profit and Loss A/c Dr. 37500
To X's Capital A/c 12500
To Y's Capital A/c 7500
To Z's Capital A/c 5000
(Being the amount of profit and loss account adjusted against partners' capital accounts in the ratio of 5:3:2)

5. Adjustment of Future Profits and Losses
X's Capital A/c Dr. 25000
Y's Capital A/c Dr. 15000
Z's Capital A/c Dr. 10000
To Future Profits and Losses A/c 50000
(Being the adjustment made for future profits and losses in the ratio of 2:3:5)

Explanation

1. Transfer of General Reserve to Capital Accounts
The general reserve is a reserve created out of profits and is available for future contingencies. As per the partnership agreement, the partners share profits and losses in the ratio of 5:3:2. Hence, the general reserve is transferred to partners' capital accounts in the same ratio.

2. Adjustment of Advertisement Suspense A/c
The advertisement suspense account is a temporary account created to record the expenses related to advertising that are not yet allocated to a specific accounting period. In this case, the amount of advertisement suspense is adjusted against the profit and loss account.

3. Transfer of Workmen Compensation Reserve to Partners' Capital Accounts
The workmen compensation reserve is created to provide for future liabilities related to workmen compensation. As per the partnership agreement, the partners share profits and losses in the ratio of 5:3:2. Hence, the workmen compensation reserve is transferred to partners' capital accounts in the same ratio.

4. Adjustment of Profit and Loss A/c
The profit and loss account is a nominal account that shows the net profit or loss of the business. In this case, the amount of profit and loss account is adjusted against partners' capital accounts in the ratio of 5:3:2.

5. Adjustment of Future Profits and Losses
As per the partnership agreement, the future profits and losses are to be shared in the ratio of 2:3:5. Hence, an adjustment is made in partners' capital accounts to reflect the new ratio for future profits and losses.

Z capital ac Dr 22200
to x capital ac. 22200