Gratuity liabliity entry
This query is : Resolved
19 April 2012
Kindly help me and advise how to pass entry of gratuity in books when gratuity is funded by LIC of india
Present value of obligation as per acturial valuation is Rs 23.62 crores
Fair value of Plan assets is Rs 19.06 crores
Net liability to be provided as at 31st March ,2012- Rs 4.56 crores
Opening balance in liability for gratuity is Rs 6.12 croes so we have to reduce liability by Rs 1.56 crores
On the other hand actuary is saying Rs1.55 crores to be recognised in the profit & loss account
i am confused regarding what entry to be passed and help me
Present value of obligation as per acturial valuation is Rs 23.62 crores
Fair value of Plan assets is Rs 19.06 crores
Net liability to be provided as at 31st March ,2012- Rs 4.56 crores
Opening balance in liability for gratuity is Rs 6.12 croes so we have to reduce liability by Rs 1.56 crores
On the other hand actuary is saying Rs1.55 crores to be recognised in the profit & loss account
i am confused regarding what entry to be passed and help me
19 April 2012
U should recognise the total expense as given in the acturial valuation report. The closing liability is only decreased not the expense for the year.
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