Gratuity entry

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

20 June 2015 Gratuity entry( in company records))in sequence of occurence:-
1. Gratuity deducted from employee salary
2. Gratuity provision made in books based on actuary report.
3. Payment made to LIC fund (also, when no LIC fund exists)
4. Money received from LIC
5. Paid to emplpoyees

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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20 June 2015 1 No deduction can be made for gratuity from salary.
2 Gratuity ac Dr
To Provision for gratuity Cr.
3 Provision for gratuity Dr
To bank ac Cr
4 Bank ac Dr
To Gratuity payable ac
5 Gratuity payable ac Dr
To Bank ac Cr.

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