Follow Our FB Page << >> for Daily Laughter. We Post Funny, Viral, Comedy Videos, Memes, Vines...

what is the journal entry for this situation? and why?
Gratuity for this year TK1000000,which TK700000 shows in
income statement and TK150000 will shown in next 2 year
each.(this is a management decision)

what is the journal entry for this situation? and why? situation: Gratuity for this year TK100000..

Answer / darshan

profit & loss a/c........Dr. 700000
outstanding liability....Dr. 300000
To Gratuity a/c 1000000

from the co.s point of view:-
Rs. 700000 is the expense for this year which is
debited in p&l a/c
whereas, Rs. 300000 is the outstanding liability of the
company as 1000000 is gratuity amount for this year and
management decides to show it in next two years equally.

Is This Answer Correct ?    2 Yes 0 No

Post New Answer

More Audit Interview Questions

How will you calculate impairment of assets of a software company?what is the necessary steps briefly describe?

0 Answers   IBM,

I am managing a partnership firm which has a turnover of 50 lakhs in its first year business i.e 2008-09 and in previous financial year 2009-10 it has only 27 lakhs turn over. Please let me know when we have to file our IT return. whether it is before 31st July 2010 or 30th September 2010.

2 Answers  

Why do you want to join audit?

0 Answers   Ernst Young,

how many years deduct the depreciation amount

4 Answers  

i want question papers audit staff selection examination

0 Answers  

What are the different types of audits?

0 Answers  

what is a balance sheet

11 Answers   Cognizant, State Bank Of India SBI,

accounting seation and taxation caluation

2 Answers  

What do you know about KPMG?

0 Answers   KPMG,

hi i want to know the use of lookup, Hlookup and Vlookup with full example with Excel file. pls if any body have this pls help me.

4 Answers   Genpact, GIS,

what happen if any company get net loss

3 Answers   BOC,


2 Answers