Gratuity under CTC

Corrected entries:

Debit (Staff Salaries)

Debit (Gratuity Expense/Provision for Gratuity)

Credit (Gratuity Payable to Trust)

Credit (Salaries Payable/Employee Benefits Payable) 

Gratuity is a retirement benefit, and the employer's contribution should be debited to Gratuity Expense or Provision for Gratuity.

 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.