What are the accounting entries for Gratuity as per AS -15?
1) Whether creation of Provision for Gratuity is mandatory every year? If so whether the following entry can be passed?
Gratuity Expense A/c - Dr
To Provision for Gratuity - Cr
2) Whether the Gratuity has to be contributed by opening a Bank A/c and whether opening of Bank A/c is mandatory. If so whether the following entry can be passed?
Gratuity Fund A/c - Dr (Under Asset)
To Bank A/c
(or)
Provision for Gratuity - Dr
To Bank A/c
3) Whether the same entries will be applicable in case of Contribution to LIC Scheme for Gratuity? Whether provision needs to be created for the same?
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