AS 15

Accounting treatment of retirement benefits According to icai's AS 15 , retirement benefits include following amount which is contributed by employer :- Provident fund superannuation fund / pension fund Gratuity leave encashment benefits Post retirement health benefits Other retirement benefits All above benefits is part of employee's salary and calculation of employer's contribution depends on the salary grade of employee and rank of employee . Central govt. made special department of provident fund in which employer contributes . So , in profit and loss account above payment is an expense and will be debited in profit and loss account .