We have passed journal entry for Gratuity payable dated 31.3.19 as follows: Gratuity A/c Dr To Gratuity payable A/c
If there was no gratuity paid for the payable amount entered earlier and the new provision has to be created for the FY 19-20. In this scenario, what about the old payable balance entered on 31.3.19.
Will that be added to current year provision? Or is there a cancellation entry for the old amount?
08 January 2020
When I am reversing the entry for Gratuity payable, the net Gratuity amount is coming as a difference between old amount and new entry .
CAclubindia
