20 January 2011
In case of Gratuity preimum is paid to LIC , it is treated expenses i.e entry will be made Gratutiy A/c Dr to Bank
Now when gratuity is received from LIC for a person who left Then entry will be passed Bank A/c Dr. to Gratuity Fund A/c
When grautity is paid to employee by the company which is received from LIC then Gratuity Fund A/c To Bank (Cheque is issue in the name of employee)
In this case it is better to open a new bank account for Gratuity. In which Grautuity recd from LIC and Grauity paid to employee transction is to be dealt only.
07 August 2022
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