Miss Riya (working) (27 Points)
23 June 2023I have 3 interrelated questions, kindly tell detailed accounting entries of the following
1. Laptop of 1 lac purchased by company.
2. same laptop given to Sita (employee) for work from home and 50% of laptop amount will be deducted as Security from her next two month's salary.
3. TDS deduction calculation of SITA with respect to above deduction ? and its accounting treatment?
prasad Nilugal
( GST Practitioner & Accounts )
(14221 Points)
Replied 23 June 2023
Purchase of Laptop entry
Laptop A/c Dr
Input CGST A/c Dr
Input SGST. A/c Dr
To Trade Creditor A/c Cr
( purchase of Laptop)
Laptop A/c under Non-current Asset , Balance-sheet
Salary A/c Dr
To Salary payable A/c Cr
To Security Deposit. A/c Cr
To TDS on Salary. A/c Cr
( Salary payable after deduction of security Deposit and TDS)
Security Deposit is Liability of Company to pay back to employee in future So , same will be shown in Liability side .
Miss Riya
(working)
(27 Points)
Replied 29 June 2023
Thank you for your answer Mr. Prasad Nilugal.
after your second entry, What will be the Journal entry of security deposit refunded to Sita after 5 years?
Are her salary accounts will get affected or not ?
Miss Riya
(working)
(27 Points)
Replied 29 June 2023
also if we plan to recover 50% of laptop amount as security. Do we have to keep that amount inclusive or exclusive of Gst ?
prasad Nilugal
( GST Practitioner & Accounts )
(14221 Points)
Replied 02 July 2023
After 5 years refund entry will be
Security Deposit A/c Dr
To Bank A/c Cr
( security deposit earlier taken now refunded to employee as per the agreement )
Salary account will not effect , just pass entry as above and write all details in narration ,also you have issue Security Deposit receipt to employee while accepting deposit as documentary evidence . Discuss with your company CA as well in this regard .
CAclubindia
