Dear All,
I am working in Limited company and we have taken the gratuity valuation. I have queries w.r. to accouting of gratuity in trust books and in the books of company
|
Particulars |
Books of com |
Books of trust |
||
|
initial deposit for |
Gratuity trust dr |
Bank a/c dr |
||
|
openg saving a/c |
to Bank |
to company |
||
|
contrib. during year |
Gratuity trust dr |
Invt.a/c dr |
||
|
to Bank |
to company |
|||
|
providing liab. |
Gratuity exp |
Company a/c dr |
||
|
to Gratuity trust |
to gratuity payable |
|||
|
Rect of cheque |
no entry |
Bank a/c dr |
||
|
from trust |
to Invt |
|||
|
disposal of gratuity |
no entry |
Gratuity payable dr |
||
|
cheq to employee |
to bank |
|||
|
Note: Gratuity trust to be grouped under loans and advances in the books of company |
||||
Whether the above entries were passed correctly or not pls help me out.
CAclubindia
