Provision for gratuity

A/c entries 693 views 1 replies
User Avatar

Wealth Manager
5293 Points Joined December 2008

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

Reply Share Follow
On 08 September 2011 at 10:31 Report
Replies (1)
User Avatar

LEARNER
1089 Points Joined November 2008

Gratutiy is to be computed as provided in AS 15.. AS 15 provides for acturial valuation as the the liability requires estimation of future service and discounting... 

Reply
On 08 September 2011 at 10:59


CCI Pro

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Threads

More recent discussions | Post

Related Threads
Loading