give the journal entry to distribute ' WORKMEN COMPENSATION RESERVE' of Rs. 70,000 at the time of retirement of neeti when there is a claim of Rs. 25,000 against it. The firm has three partners raveena, neeti and rajat.

Their ratio will be 1:1:1.

Reserve(to be ditributed) = 70,000 - 25,000 = Rs.45,000

JOURNAL ENTRY:

PARTICULARS

L.F.

DEBIT AMOUNT

CREDIT AMOUNT

1)Workmen’s compensation reserve A/C..Dr

  To raveena’s capital A/C.

  To neeti’s capital A/C.

  To Rajat’s capital A/C.

(Being workmen’s compensation distributed among all partners in their profit sharing ratio 1:1:1)

 

45,000

..

..

..

..

..

..

..

15,000

15,000

15,000

..

..

..

                                 

  • 4

Workmen's Compensation Reserve a/c... Dr                       70,000

  To Provision for Wormen's Compensation Claim                                      25,000

  To Raveena's Capital a/c                                                                                 15,000

  To Neeti's Capital a/c                                                                                        15,000

  To Rajat's Capital a/c                                                                                        15,000

(Being Workmen's Compensation Claim distributed

among the partners in the ratio 1:1:1)

  • 7
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