Please explain this problem... What is the accounting treatment?
Menu
Accounting treatment of gratuity
Replies (3)
As per law or Gratuity Act 1972 it is defined as the amount payable to any employee employed in any establishment .
Now accounting treatment for gratuity is providing for gratuity .
The calculation is on the basis of last drawn salary.
Actually employers pay as mentioned in the gratuity act.
basis salary plus deafness allowance multiplied completed years of service multiples by 15 /26
Now accounting treatment for gratuity is providing for gratuity .
The calculation is on the basis of last drawn salary.
Actually employers pay as mentioned in the gratuity act.
basis salary plus deafness allowance multiplied completed years of service multiples by 15 /26
Sorry sir.. I'm trying to attach a file but it is not getting uploaded... Thank you for your explanation
We make provision for gratuity at year end.
Gratuity Dr
To provision for gratuity (long term & short tern)
When the employee leaves, the provision account is debited and bank is credited.
Recent Topics :
- Capital Gain on sale of Vacant Land- Whether Demol
- Hello dear I want help .
- Category B/D pop up after the file is e verified
- Section 56(2)(x)(xi) applicability to compensation
- How to claim exempt income u/s 10(26) in ITR-1 of
- 63053900 tax rate
- Clubbing of deceased's income
- Which ITR to use
- Sovereign gold bond capital gain
- In TDS section no column for relationship in itr
Related Topics :
CAclubindia
