Accounting head

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PRATIK KAYAL (Querist)
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21 April 2011 dear sir/madam

Actually there had been an unfortunate accident in manufactuering concern. And the management has decided to give Rs. 10 lacs as compensation besides an immediate relief of Rs. 50000/- each to 3 workers with fatal injury. Now my question is wat should be the proper accounting head and the accounting treatment for the total expenses of rupees 10.5 lacs for each of 3 workers and how sud i account for the liability which is yet to be paid for ruppes 10 lac each for 3 workers.

Thanking you all in anticipation

Mandar

Mandar (Expert)
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22 April 2011 Pratik
You may account for the same under workmen compensation A/c or
Employee compensation a/c

You should provide Rs. 10 lakhs each immediately in your books. On the actual payment you should rever the provision & account for the cost.

PRATIK KAYAL

PRATIK KAYAL (Querist)
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22 April 2011 thank u sir

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