journal entry of compensation paid to an injured worker?
Answers
Answer:
An employee met with an accident in the factory and suffered serious injuries,
The firm has been ordered by the court to pay a compensation of? 20,000 to the employee.
The firm has made the payment.
(e) Claim for damages by the customer amounting to 8,000 was admitted by the firm and
paid.
(f) The firm lost a litigation case and was ordered to pay a penalty of 16,000 which was
paid.
13. Following is the balance sheet of Chiku, Piku and Riku as on 1st April, 2016.
Balance Sheet
as at 1st April, 2016
Liabilities Amt (Rs) Assets Amt(Rs)
Reserve & Surplus 39,000 Land and Building 50,000
Contingency Reserve 10,000 Plant and Machinery 40,000
Creditors 11,000 Furniture and Fixtures 20,000
Capital A/C Stock 30,000
Chiku 60,000 Debtors 40,000
Pinku 50,000 Bank 20,000
Explanation: