Return of Gratuity by Workmen Reinstated
S. Srinivasa Prasad
(Querist) 23 February 2010
This query is : Resolved
Respected Seniors,
The issue was raised by me earlier, and i received inputs from you.
But, the management due to intervention of local leaders and Union has taken the worker back.
Now the worker has paid the Gratuity received by him to the company.
My question is - how to treat the amount of Gratuity received by the Company from the Worker.
What effect should i give in the accounting records and also the effect tobe gien in Gratyity records.
Please advise A.S.A.P.
Regards,
S. Srinivasa Prasad.
Member of the Club
B K Raghavendra Rao
(Expert) 23 February 2010
Gratuity is paid by the employer from his funds in accordance with the Payment of Gratuity Act. When the paid gratuity amount is received back, the company would reverse the entries in its accounts ledgers.
Gratuity records would be amended accordingly and the management's approval is taken. It is as good as wiping off the child's writing on a slate.
S. Srinivasa Prasad
(Querist) 23 February 2010
Thank you very much for prompt reply. Pl. give a citation / provision which can substantiate the statement.
Looking forward for the response.
Regards.