Journal Entry to Distribute Workmen’s Compensation Reserve

To distribute the Workmen’s Compensation Reserve of Rs 70,000 at the time of retirement of Neeti, when there is a claim of Rs 25,000 against it, the following journal entry needs to be recorded:

1. Determine Neeti's share of the reserve:
- Neeti's share of the reserve can be calculated based on her profit-sharing ratio. Let's assume the profit-sharing ratio is 1:2:1 for Raveena, Neeti, and Rajat respectively.
- Neeti's share of the reserve = Rs 70,000 * (1/4) = Rs 17,500.

2. Account for the claim against the reserve:
- Since there is a claim of Rs 25,000 against the reserve, this amount needs to be deducted from the reserve.
- Workmen’s Compensation Reserve A/c (Dr.) - Rs 25,000
- To Claim against Workmen’s Compensation Reserve A/c (Cr.) - Rs 25,000

3. Distribute the remaining reserve among the partners:
- The remaining reserve after deducting the claim will be distributed among the partners based on their profit-sharing ratio.
- Raveena's share of the remaining reserve = Rs 70,000 * (1/4) * (2/4) = Rs 8,750
- Rajat's share of the remaining reserve = Rs 70,000 * (1/4) * (1/4) = Rs 4,375

4. Record the distribution of reserve:
- Cash/Bank A/c (Dr.) - Rs 30,125 [Neeti's share of the reserve (Rs 17,500) + Raveena's share of the remaining reserve (Rs 8,750) + Rajat's share of the remaining reserve (Rs 4,375)]
- To Workmen’s Compensation Reserve A/c (Cr.) - Rs 30,125 [Distribution of the reserve]

Journal Entry Summary:
The journal entries to distribute the Workmen’s Compensation Reserve of Rs 70,000 at the time of retirement of Neeti, when there is a claim of Rs 25,000 against it, are as follows:

- Workmen’s Compensation Reserve A/c (Dr.) - Rs 25,000
- To Claim against Workmen’s Compensation Reserve A/c (Cr.) - Rs 25,000

- Cash/Bank A/c (Dr.) - Rs 30,125
- To Workmen’s Compensation Reserve A/c (Cr.) - Rs 30,125

Note: The above journal entries assume that the reserve is fully distributable and there are no other specific requirements or provisions mentioned in the question.