do we distribute employee provident fund to partners at the time of :

1. admission/ retirement

2. dissolution( is it treated the same way as reserve fund ?)

Dear Student, Employees Provident Fund is a retirement benefit fund created by the business for the welfare of its employees. Therefore, at the time of Reconstitution of Partnership Firm i.e. Admission/Retirement/Death of a Partner, it should not be distributed among the partners, in fact, it is shown on the Reconstituted Firm's Balance Sheet. 
In response to your second query, at the time of Dissolution of Partnership Firm,
it is transferred to the  credit side of Realisation Account  like any other liability of the firm, and finally are paid off by  debiting it to Realisation Account.

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Employees' Provident Fund (EPF) is never distributed among partners. It is a liability of the Firm towards its employees (not partners). An employee gets his PF amount on his/her retirement.


Reserve Funds are simply the profits in accumulated form. Partners have right to receive these profits.

But EPF is formed by deducting a part of employees' salary and depositing such amounts in their PF Accounts. Employees have the right to receive them when retiring.



So, EPF will remain as a firm's liability even after any reconstitution of the firm.

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