Gratuity Provisioning

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Whether all companies ( as per companies act ) are required to provide for gratuity ? supported by an actuarial certification ?
Replies (4)

When reserves are doubtful provisions is required

But how is provisioning possible here?

Dr. Gratuity 

Cr provision? 

Gratuity is a liability and so a seperate provision must be created out of what?

If we act like an accounting techie

Dr. Gratuity expense in income statement

Cr. Gratuity liability

 

Thankyou. Any other reply by fellow members?
GRATUITY PROVISION IS GENERALLY MADE ON GRATUITY CALCULATION.
ON BASIC SALARY AND DA


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