Provision for gratuity

Mihir (Wealth Manager) (5293 Points)

08 September 2011  

Provision for gratuity

How does one provide for gratuity in the  books of accounts ?

Last salary drawn / 26 x 15 x  number of years.

Number of years or number of days (days / 365) ???

And if excess provision is provided due to miscalculation, can it be rectified in the subsequent AY?

 

Thanks