Dear Sir,
We have taken a gratuity scheme from LIC first time, in Jan-21 and paid 65 Lacs Rs. and in the c/d statement they have given us 80000 Rs. interest on that amount as on 31.3.2021
I have not created any gratuity fund, whole 65 Lacs booked in expense
Now where to show the Interest earned in books
This is your personal books I guess.
Taxable investment a/c
To Gratuity expense a/c
derecognised expense and recognised asset
Bank a/c
To Interest income a/c
interest received and put into bank.
CAclubindia
