Page 8 - 34.1 FR MARCH 22 MTP QP

Record journal entries in the books of Wheel Co. Limited till 31st March, 20X4, after giving effect of the
changes in the terms of the loan on 31st March, 20X3. (INDAS 109)

(b) Diamond Pvt. Ltd, has a headcount of around 1,000 employees in the organisation in financial year 2X19-
2X20. As per the company's policy, the employees are given 35 days of privilege leave (PL), 15 days of
sick leave (SL) and 10 days of casual leave. Out of the total PL and SL, 10 PL and 5 SL can be carried
forward to next year. On the basis of past trends, it has been noted that 200 employees will take 5 days
of PL and 2 days of SL and 800 employees will avail 10 days of PL and 5 days of SL.

Diamond Pvt. Ltd. has a post-employment benefit plan which is in the nature of defined contribution plan
where contribution to the fund amounts to Rs. 200 crores which will fall due within 12 months from the end
of the accounting period.
The company has paid Rs. 40 crore to this plan in financial year 2X19-2X20.
What would be the treatment of the short-term compensating absences, profit-sharing plan and the defined

contribution plan in the books of Diamond Pvt. Ltd.? (INDAS 19)

34.7