Question:
Anita, Gaurav and Suresh were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 1st April, 2025, Gaurav retired. On the date of Gaurav's retirement, there existed a balance of ₹ 1,50,000 in Workmen's Compensation Fund.
Pass the necessary journal entries for treatment of Workmen's Compensation Fund on Gaurav's retirement in each of the following cases:
(i) Claim on account of Workmen's Compensation was estimated at ₹ 2,00,000.
(ii) Claim on account of Workmen's Compensation was estimated at ₹ 1,20,000.
(iii) Claim on account of Workmen's Compensation was estimated at ₹ 1,50,000.
Anita, Gaurav and Suresh were partners in a firm sharing profits and losses in the ratio of 4 : 3 : 3. On 1st April, 2025, Gaurav retired. On the date of Gaurav's retirement, there existed a balance of ₹ 1,50,000 in Workmen's Compensation Fund.
Pass the necessary journal entries for treatment of Workmen's Compensation Fund on Gaurav's retirement in each of the following cases:
(i) Claim on account of Workmen's Compensation was estimated at ₹ 2,00,000.
(ii) Claim on account of Workmen's Compensation was estimated at ₹ 1,20,000.
(iii) Claim on account of Workmen's Compensation was estimated at ₹ 1,50,000.
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Workmen's Compensation Fund treatment: If claim>fund \(\Rightarrow\) deficit to Revaluation A/c. If claim& Lt;fund \(\Rightarrow\) surplus distributed among partners. If claim = fund \(\Rightarrow\) no adjustment needed.
Updated On: Feb 26, 2026
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Solution and Explanation
In the books of the firm
Journal Entries Case (i): Claim estimated at ₹ 2,00,000
Journal Entries Case (i): Claim estimated at ₹ 2,00,000
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