Theja Gajula (22 Points)
27 August 2016
CA Mehul Chudasama
(Chartered Accountant)
(618 Points)
Replied 27 August 2016
you can claim Rs.60000/- and not Rs.40000/- as provision for gratuity is not allowed so whatever your net profit add Rs.40000/- and deduct Rs.60000/-
Theja Gajula
(22 Points)
Replied 11 November 2016
Thanks for the reply sir.
But at the time of accounting(entry), please confirm that whether the following entry is correct
Provision Dr 40,000
P&L Dr 20,000
Bank Cr 60,000
If it is so, we have to add back Rs.20,000 only sir.
Please clarify
CAclubindia
