Do we really have two kimds of accounts? If it is so then to which a/c we use to pay compensation?
Dear Student,
As per prudence concept, losses should be anticipated so for any misshappening in our business we have to create a provision for workmen compensation. But when this liability really materialise we have to pay now and then workmen compensation reserve A/c is used.
Regards
As per prudence concept, losses should be anticipated so for any misshappening in our business we have to create a provision for workmen compensation. But when this liability really materialise we have to pay now and then workmen compensation reserve A/c is used.
Regards