gratuity working
This query is : Resolved
13 August 2010
Hello Expert,
1)Can gratuity be shown as expense in P&L a/c?
2)Is this logic as per gratuity act? or correct??
Gratuity paid = Basic+DA * No. of years service
If basic is 10000 then gratuity after 5 yrs= 10k*5 yrs = 50000
Deduction made from salary every month
50000/5*12=833
so by the end of 5 yrs co. will accumulate 50000
that can be paid as gratuity.
regards
kirti
1)Can gratuity be shown as expense in P&L a/c?
2)Is this logic as per gratuity act? or correct??
Gratuity paid = Basic+DA * No. of years service
If basic is 10000 then gratuity after 5 yrs= 10k*5 yrs = 50000
Deduction made from salary every month
50000/5*12=833
so by the end of 5 yrs co. will accumulate 50000
that can be paid as gratuity.
regards
kirti
13 August 2010
in accounts even the gratuity provision should be shown in the P&L a/c
gratuity should be paid in addition to the basic pay and not deducted and to be paid......
gratuity should be paid in addition to the basic pay and not deducted and to be paid......
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