04 August 2008
Hi mates, this company i audit maintains a trust for the gratuity fund with LIC,can anyone pls brief me up on all the accounting entries to be passed while making: 1)annual payment to the fund 2)provision for gratuity payment 3)interest on gratuity fund(recvd) 4)insurance premium for gratuity 5)payment of Gratuity
i found out the following account heads in the tally prog. relating to gratuity Insurance Premium gratuity, SBI gratuity(bank account), LIC of India, Interest on gratuity LIC deposit,SBI(main bank a/c),gratuity
1)Gratuity Payable to Gratuity fund Dr. To Bank 2)Profit and loss a/c Dr. To Gratuity payable to Gratuity Fund 3)No entry, as the liability is net after interest. 4)Insurance premium Dr To bank 5)No entry as the payment is settled by fund.
CAclubindia
