Provision for Gratuity

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shantilal jain (Querist)
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20 September 2010 Dear Sir,
I have a question. Sir in a pvt ltd co. there are 105 employees. For gratuity

1.How to calculate the amt of provision?

2.Amount calculated by valuer as 836282/- for the year ended 31.03.2010

3.Co. made the payment of rs.500000/- in this year.

4. On 31.03.2010 what should be the entry required to be passed?

Pls suggest us as soon as possible.
thanks in advance.

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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20 September 2010 on 31.3.10

PL A/c Dr 836282/-

To Provision For Gratuity Cr. 836282/-

No. on payment

Provision for Gratuity Dr. 500000/-

To Bank Cr. 500000/-