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Entry

GANESH KUMAR KASHYAP (Private Job) (206 Points)

25 June 2015

DEAR SIR,

EMPLOYEE SALARY DUE FOR 15 DAYS OF RS.10000 & COMPANY RECOVERY FOR RS. 20000 FROM EMPLOYEE FOR ONE MONTH COMPLETE, BECAUSE HE DID NOT GIVE NOTICE TO COMPANY.

WHAT IS THE JOURNAL ENTRY FOR THIS.

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Kumar Gaurav (Going...to be C.A soon...) (1624 Points)
Replied 27 June 2015

In such a case company will recover the remaining balance amount out of employee other benefits amount lying with company.

ie: Salary Payable Dr. 10000

Employee benefit a/c Cr 10000 (for that individual employee only) to that extent because no employee will pay the short period notice served amount in cash/bank unless legal action taken by the company.