a company paying joining bonus to new employee he has to work minimum 12 months from joining date
accounted like
Joining Bonus( exp) Dr
to bank AC
* is that accounting treatment right?
*whether that joining bonus has differ for 12 or not
kishor the accounting entry is not correct. since the joining bonus get accrued as and when a new employee joines, but the obligation to pay only arises aftr successful completion of 12 month.
so the entry will be like
Joining bonus a/c Dr
to joining bonus payable
( being joining bonus accounted for)
joining bonus payable a/c Dr
to bank
( being joining bonus payble on successful completion of 12 months)
CAclubindia
