185
Question
what is provident fund ? and how it will be treated in financial statements ? give example?
what is provident fund ? and how it will be treated in financial statements ? give example?
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Solution
Employees' Provident Fund is a retirement benefit fund created by the business for the welfare of its employees. It is a certain portion of employees' salary deducted on monthly basis from their salaries and the accumulated amount is paid off to them at the time of their retirement. Therefore, It is a statutory liability and is disclosed on the Liabilities side of the Balance Sheet.
Employees' Provident Fund is a retirement benefit fund created by the business for the welfare of its employees. It is a certain portion of employees' salary deducted on monthly basis from their salaries and the accumulated amount is paid off to them at the time of their retirement. Therefore, It is a statutory liability and is disclosed on the Liabilities side of the Balance Sheet.
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