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y provident fund is not divided in partners capital account??

This is a liability to staff members. It is deducted from their salary every month and invested somewhere like, deposited in Bank as FD. Interest earned on investment is also credited to this fund.

Also, Employer (the partners in this case) contribute in favour of employees.

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When employees leave the enterprise it is given to them. So, it is not in the nature of free reserves and cannot be distributed among partners.

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wat is the accounting treatment for liability on account of provident fund?

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Only Employees provident is not divided among partners because employees provident is a liability for a firm and a liability can't be divided among the partners. So, the employees provident fund has to be paid by the Firm to the employees at the time when an employee wants to leave, retire or on death of the employees.
So, it's a liability that a firm needs to pay its employees , hence it will not be divided among partners in any case
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