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Rtp nov20

Costing

In the rtp nov20 , question why do we take the employer's contribution as earnings ? Such contributions is to be treated as cost rite and not earnings since that is not received be the employee rite .

Swathi Krishna

CA Final

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11-Nov-20 11:20

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Answers (6)

For an employee these are earnings and for the company these are cost elements

Sriram Somayajula

Admin

11-Nov-20 12:06

Then in illustration 3 of the institute's textbook, why is the employer contribution not added ?

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Swathi Krishna

CA Final

★ 8K+

11-Nov-20 12:09

In this illustration employee's contribution is deducted which is understandable, but then why is empolyer's contribution not added ?

Thread Starter

Swathi Krishna

CA Final

★ 8K+

11-Nov-20 12:10

Thread Starter

Swathi Krishna

In this illustration employee's contribution is deducted which is understandable, but then why is empolyer's contribution not added ?

In this the computation is made only to show what an employees net wages are. it is not used for any other computation

Sriram Somayajula

Admin

11-Nov-20 12:35

Sriram Somayajula Admin

In this the computation is made only to show what an employees net wages are. it is not used for any other computation

And employer contribution is added

Sriram Somayajula

Admin

11-Nov-20 12:56

Sriram Somayajula Admin

And employer contribution is added

https://resource.cdn.icai.org/55900bosintermay20-p3-cp3.pdf

Sriram Somayajula

Admin

11-Nov-20 12:57

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