Gratuity

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 February 2015 sir

regarding provision for gratuity and leave benefit
i want to know while creating file in tally
gratuity which account head indirect expenses or not

Sandeep Dharar

Sandeep Dharar (Expert)

04 February 2015 As per me it should b recorded as deposits under liability. Coz, the Employer has to pay Gratuity to the employees after termination of his/her services with the employer.

And if u r asking about payment of gratuity to the employee, then it should b recorded as expenses(Indirect).

Vinayak

Vinayak (Expert)

04 February 2015 For software companies, gratuity expense can be a direct expense. Just check the nature of business to define if this is a direct expense or indirect expense.

CA Deven

CA Deven (Expert)

04 February 2015 HI,

THERE WILL BE TWO LEDGER YOU NEED TO CREATE

1. PROVISION FOR GRATUITY ( LONG TERM LIABILITIES AND PROVISION)
2. GRATUITY EXPENSES ( GROUPED UNDER PAYROLL EXPENSES)

THANKS

DEVEN

CA Deven

CA Deven (Expert)

04 February 2015 HOPE YOU GOT PROPER REPLY TO YOUR QUERY....

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now