If workman compensation claim appears in balance sheet, what will be its treatment on dissolution?
Normally workmen compensation fund appears in the balance sheet and the workmen compensation claim is given in the adjustment which is transferred to the credit side of the realisation account and same is shown on the debit side as cash or bank account.If it appears in the balance sheet then it may be any outstanding claim which arose in the previous years and had not been paid.If any claim arises against the workmen compensation fund then it should be paid.