An employee of the patnership firm has been injured in a road accident and the firm has to pay ₹7000 to him. Pass the journal entry for this.
Answer & explanation
Correct answer: option 4
As the employee is injured, the firm has to pay him from the workmen compensation reserve because it is a workmen claim. So, journal entry for this-
Revalution A/c Dr.. ₹7000
To Workmen Compensation Claim A/c ₹7000