ACCOUNTING ENTRIES FOR GRATUITY
This query is : Resolved
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Querist : Anonymous
Querist :
Anonymous
(Querist)
20 January 2011
What are the accounting entries to be made for gratuity in the following cases :-
1.When the employer makes payment to LIC linked gratuity.
2.When the gratuity amount is received [from LIC] in the name of the company .
3.When the payment is made to the employee.
Thanks & regards,
1.When the employer makes payment to LIC linked gratuity.
2.When the gratuity amount is received [from LIC] in the name of the company .
3.When the payment is made to the employee.
Thanks & regards,
20 January 2011
****************************
20 January 2011
1> Gratuity fund Dr.
To LIC Cr
LIC Dr.
To Bank Cr.
2 > Bank Dr.
To Gratuity Fund Cr.
3> Gratuity Dr.
To Bank cr.
To LIC Cr
LIC Dr.
To Bank Cr.
2 > Bank Dr.
To Gratuity Fund Cr.
3> Gratuity Dr.
To Bank cr.
Message likes :
2 times
20 January 2011
In case of Gratuity preimum is paid to LIC , it is treated expenses
i.e entry will be made
Gratutiy A/c Dr
to Bank
Now when gratuity is received from LIC for a person who left
Then entry will be passed
Bank A/c Dr.
to Gratuity Fund A/c
When grautity is paid to employee by the company which is received from LIC
then
Gratuity Fund A/c
To Bank
(Cheque is issue in the name of employee)
In this case it is better to open a new bank account for Gratuity. In which Grautuity recd from LIC and Grauity paid to employee transction is to be dealt only.
i.e entry will be made
Gratutiy A/c Dr
to Bank
Now when gratuity is received from LIC for a person who left
Then entry will be passed
Bank A/c Dr.
to Gratuity Fund A/c
When grautity is paid to employee by the company which is received from LIC
then
Gratuity Fund A/c
To Bank
(Cheque is issue in the name of employee)
In this case it is better to open a new bank account for Gratuity. In which Grautuity recd from LIC and Grauity paid to employee transction is to be dealt only.
Message likes :
3 times
07 August 2022
For any assistance required with respect to Gratuity trust, superannuation trusts or any employee benefit schemes, do connect on below mentioned email id a1consultancyservices@yahoo.com. We are a 9 year old firm entrusted by many indian and multi national companies, we are specializing in the field of corporate employee benefits.
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