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Workers compensation insurance
Workers compensation insurance provides protection for employees who suffer a job-related illness or injury. Entire cost is generally paid by the employer. Cost depends on how many employees a company has, accident history, risk factors associated with the job, etc.
Employer makes a payment at the beginning of the year using an estimated payroll figure for the year.
Debit - Workers' Comp. Insurance Expense
Credit - Cash
When end of the year comes, actual amount is figured and more is sent in, or a refund is given to employer.
What do the "transfer" items in the notes to the financial statements relate to? (in the capital assets section; Plant, property & equipment and Intangible assets
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with help of illustrations,comment on final accounts
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