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Discussion > Accounts > A/c entries >

Salary journal entries

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[ Scorecard : 56]
Posted On 26 October 2010 at 12:16 Report Abuse

Dear All,

my salary statement has the following heads

Gross salary,Sp all,LOP,PF,ESI,Profession tax,net salary


when i want to book salary in tally , how should i do it ?

should i book in gross salary or in net salary ?

if in gross salary what is the entry to be passed ?

is it this entry ?

salary a/c dr (gross salary)

cr lop

cr profession tax

cr pf employees contribution

cr provision for salary (net salary)

if we book in net salary , is it this journal

salary a/c dr

cr provision for salary (net salary)

suppose if we book this way how will we book the pf employees contribition as liability and profession tax as liability ?


please help me on this regard.


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Yogesh Shah
CA Final - Group II cleared

[ Scorecard : 1041]
Posted On 26 October 2010 at 12:42

Hi John,


You have to pass a entry for GROSS SALARY.

All the deductions show as a 'LIABILITIES'. When your company will pay these amounts to respective bodies, then deduct liability created by that payment.


But I didn't get the logic why you wanna credit net salary to 'Provision for Salary'. Net salary directly go to Cash / Bank account. If you want to show 'Salary Payable' then simply pass journal entry as -

Salary Account  DR

to Salary Payable A/c.


[ Scorecard : 7534]
Posted On 27 October 2010 at 10:07

Entry for Salary Transaction should be done as per following:

At the time of Credit of Salary:

Basic Salary A/c         Dr.

HRA A/c                     Dr.

Trpotation Allowance   Dr.

Spl All                        Dr.

       To  PF A/c

       To ESIC A/c

       To Professional Tax A/c

       To TDS A/c             

       To Salary Payable A/c


At the time of Payment:

Salary Payable  A/c  Dr

     To Cash/ Bank

Total thanks : 3 times


[ Scorecard : 67]
Posted On 27 October 2010 at 11:23

At the time of credit of gross salary the entry is

                       salaries and wages a/c Dr

                                   To BAsic pay

                                   To Pf

                                    To ESi

  salaries and wages figure will directly goes to the prifit andv loss account to reduce pofit


at the time of payment debit all credit items to cash or bank account

We sdould show the gross salary transations in the tally books

Member (Account Deleted)
MBA/M.Com. & GNIIT -F & A- Executive

[ Scorecard : 2823]
Posted On 28 October 2010 at 10:59

Dear John,

I am agree with Rajesh


[ Scorecard : 29]
Posted On 28 October 2010 at 18:13

I also agreed with Rajesh

Accounts Executive

[ Scorecard : 128]
Posted On 03 November 2010 at 16:11

I agree with Rajesh

Tushar Desai
Manager - Finance & Accounts

[ Scorecard : 817]
Posted On 14 June 2011 at 14:25

Hi John,

I agree with Mr Rajesh


[ Scorecard : 21]
Posted On 20 June 2011 at 14:47

Hi Jhon,

Along with Mr. Rajesh.



[ Scorecard : 92]
Posted On 07 December 2011 at 18:36

Basic Salary             Dr.

Allowances              Dr.

Company Contribution to EPF Dr.

Company Contribution to EPS

Administration Charges to PF DR.

Company contribution to ESIC Dr.

         To EPF Payable

         To EPS Payable

         To ESIC Payable

         To Professional Tax Payable

         To TDS Payable

          To Labour welfare fund Payable

        To Loan to Employee

          To Salary Advance to Employee

           To Rent Recovery 

           To Canteen Expense

          To Salary Payable

Total thanks : 1 times

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