Admission of Partner> Reserves and Accumulated Profit/Losses - Workmen's Compensation Reserve

1. If there is no claim against Workmen's Compensation Reserve:

Workmen's Compensation Reserve A/c     ....Dr.

     To Partner's Capital A/cs

(Workmen's Compensation Reserve credited to old partners' Capital Accounts in their old profit-sharing ratio) 

2. If the claim for workmen's compensation is lower than the amount of Workmen's Compensation Reserve:

Workmen's Compensation Reserve A/c     ...Dr.

      To Provision for Workmen's Compensation Claim A/c

      To Partner's Capital A/cs 

(Amount of claim transferred to liability and balance to partner's Capital Accounts in their old profit-sharing ratio) 

3. If the claim is equal to Workmen's Compensation Reserve:

Workmen's Compensation Reserve A/c    ...Dr.

    To Provision for Workmen's Compensation Claim A/c

(Provision made for Workmen's Compensation Claim) 

4. If the claim is more than the amount of Workmen's Compensation Reserve:

(a) Workmen's Compensation Reserve A/c      ...Dr.

Revaluation A/c                                                ...Dr.

     To Provision for Workmen's Compensation Claim A/c

(Amount of claim debited to Workmen's Compensation Reserve and Revaluation A/c)

(b) Partner's Capital A/cs     ...Dr.

         To Revaluation A/c

(Loss on revaluation transferred to capital accounts of old partners in their old profit-sharing ratio)