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 ?)
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.