GRAUTITY & LEAVE ENCASHMENT

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sunil

sunil (Querist)
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26 September 2019 plz suggest accounting entry for leave encashment and GRAUTITY

A.S.SUNDARARAJAN

A.S.SUNDARARAJAN

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26 September 2019 Create the following ledgers in your software

Establishment - Gratuity ( Under establishment expenses group)
Establishment - Leave salary ( Under establishment expenses group)

Provision for leave salary - Current liability
Provision for gratuity - Current laibility

Establishment - Gratuity - debit
Establishment - Leave salary - debit
Provision for gratuity - Credit
Provision for Leave salary - Credit

The funding and non funding of gratuity and leave salary is separate subject and it is to be addressed accordingly