Hi Sir,
One of my clients would have shown Gratuity under employee CTC. Every month deducting the Gratuity and transferring to Gratuity Trust..
Expenses they are showing as below.
Debit (Staff Salaries)
Debit (Gratuity Employer)
Credit (Gratuity Payable to Trust)
Credit (Salary Payable to Employees)
Is it correct to show under CTC and show like this.. please clarify. Thank you!
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Gratuity under CTC
Replies (1)
Debit (Gratuity Expense/Provision for Gratuity)
Credit (Gratuity Payable to Trust)
Credit (Salaries Payable/Employee Benefits Payable)
The amount transferred to the gratuity trust should be credited to Gratuity Payable to Trust.
Salaries payable to employees should be credited to Salaries Payable or Employee Benefits Payable.
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