Question

Give the journal entry to distribute Workman Compensation Reserve' of Rs 60,000 at the time of retirement of Sajjan, when there is not claim against it. The firm has three partners Rajat, Sajjan and Kavita.

Answer 1

Journal
Date	Particulars	L.F.	Dr. Rs	Cr. Rs
	Workmen Compensation Reserve A/c    Dr.      To Rajat's Capital A/c      To Sajjan's Capital A/c      To Kavita's Capital A/c (Being workmen compensation reserve distributed among all partners in equal ratio 1:1:1)		60,000	20,000 20,000 20,000