Please explain this problem... What is the accounting treatment?
3 Replies
sabyasachi mukherjee
(27579 Points)
Replied 05 June 2020
As per law or Gratuity Act 1972 it is defined as the amount payable to any employee employed in any establishment .
Now accounting treatment for gratuity is providing for gratuity .
The calculation is on the basis of last drawn salary.
Actually employers pay as mentioned in the gratuity act.
basis salary plus deafness allowance multiplied completed years of service multiples by 15 /26
Now accounting treatment for gratuity is providing for gratuity .
The calculation is on the basis of last drawn salary.
Actually employers pay as mentioned in the gratuity act.
basis salary plus deafness allowance multiplied completed years of service multiples by 15 /26
ACCOUNTANT
(Student)
(559 Points)
Replied 06 June 2020
Sorry sir.. I'm trying to attach a file but it is not getting uploaded... Thank you for your explanation
CA Saloni
(Manager-Accounts & GST Consultant)
(5124 Points)
Replied 06 June 2020
We make provision for gratuity at year end.
Gratuity Dr
To provision for gratuity (long term & short tern)
When the employee leaves, the provision account is debited and bank is credited.
Recent Topics
- NAME CHANGE OF HUF
- Advisory for Reporting TDS Deducted by scrap Deale
- Section 194 J Technical Service/Professional Servi
- Solving of Export Related Problems
- Need your valueble insight.
- Softex For freelancer ?
- GST ON REIUMBURSEMENT ENTRY ON GST PORTAL
- Missing invoice in gst
- GST on consultancy
- Linking adhaar to UAN without employer
Related Threads
CAclubindia
