Accounting entry for gratuity

CA Devender Chauhan (Group Financial Accountant)   (1526 Points)

16 August 2011  

What will be the accounting entries in case we have maintain the fund for gratuity liability.

We have taken a policy from LIC & make yearly payments to them of the provision amount (as per acturian valuation which is being done by LIC).

Plz expain all the accounting enteries to be made for this.