Accouting entries for Gratuity under AS 15
This query is : Resolved
30 May 2008
What are the accounting entires for Employee Benefits like, Gratuity, PL, etc. under the new AS-15?
30 May 2008
it will be decided on the basis that how r u complying with AS 15.
31 May 2008
I am complying for the first time this year with an acturial valuation.
02 June 2008
simply pass this entry in first year :
31 march
provision for gratuity dr.
to gratuity liablity
with full amt calculated by actuary as ur liablity in his report.
in subsequent years :
31 march
provision for gratuity dr.
to gratuity liablity
with difference in amt of liablity calculated in report and balance in ur b.s in gratuiy liablity a/c.
means in the balance sheet, the amount reported as liability every year by actuary will be shown.
as u mentioned u r complying first time with this A.S., if there was any liablity in opening of this financial year (which actuary can tell u), that amt will be treated as prior period item and charged seperately to P&L from this years' provision.
for example : if rs. 100 is ur liablity on 31 mar.08 and actuary tells u that on 1 apr.07 ur liablity was rs. 75, u need to treat rs. 75 as prior period item (to be debited to P&L seperately) and rs. 25 as this year's provision.
in notes to accounts, disclose that u have taken actuary report for gratuity liablity and have provided in books accordingly.
31 march
provision for gratuity dr.
to gratuity liablity
with full amt calculated by actuary as ur liablity in his report.
in subsequent years :
31 march
provision for gratuity dr.
to gratuity liablity
with difference in amt of liablity calculated in report and balance in ur b.s in gratuiy liablity a/c.
means in the balance sheet, the amount reported as liability every year by actuary will be shown.
as u mentioned u r complying first time with this A.S., if there was any liablity in opening of this financial year (which actuary can tell u), that amt will be treated as prior period item and charged seperately to P&L from this years' provision.
for example : if rs. 100 is ur liablity on 31 mar.08 and actuary tells u that on 1 apr.07 ur liablity was rs. 75, u need to treat rs. 75 as prior period item (to be debited to P&L seperately) and rs. 25 as this year's provision.
in notes to accounts, disclose that u have taken actuary report for gratuity liablity and have provided in books accordingly.
Message likes :
1 times
04 June 2008
Thanks a lot.
05 June 2008
whever u have problem, call me are sms me on 09424515253. through chat we can solve problem. (I am account teacher since 20 years. So many my student get rank in CA Exams.) SUBJECT OF EMAIL SHOULD BE "ONLINE ACCOUNT STUDENT AVAILABLE"
Message likes :
1 times
04 July 2014
What if in next year actuary tells that the gratuity liability is Rs.80/- Less than Rs.100/- of previous year? please tell me Accounting entries?
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.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Exiting partner in partnership firm in gst portal
- CLOSING STOCK QUERY
- Traces submitting correction statement error
- TDS _Long term Capital Gain ref.sec 214 Table 2
- Taxability of credit in canara bank ET & T section (NRO)
- Loss of interest in PF transfer from EPFO to Trust
- ITR-Capital Gain
- IT returns for fresh job holders
- F&O reporting in ITR
- ITR-3 File/Error Found
- Account freezed for Ineligible ITC Scrutiny for GST Annual Return
- TDS on property - Form 141 query
- Seeking Advice: High Tax Shortfall on Job Switch + Let-Out House Property Loss in FY 2025-26
- Housing Society-ITR5
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
- Clarification on Tax Audit Applicability and Reporting of F&O Transactions in ITR-3
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
