SACHIN garg (ca ) (181 Points)
01 May 2011a company has created liablity for bonus in its books 2 years back but has not paid it for last 2 years becasue employee has left the company 2 years back but formalities of his resignation & final clearance are still pending today. Is non payment of bonus a default under payment of bonus act?
U S Sharma
(glidor@gmail.com)
(21056 Points)
Replied 01 May 2011
bonus is an expenditure which can not be created as liablity on accural basis, but it is decuctible from company gross profit on "payment basis" only.
company has to reverse the entry and add the amount to profit, and deduct the same on date of actual payment
CAclubindia
