Accounts Entry

Save Share

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 January 2011 Please help me to solve my problem.

Which will the accounting entry of that?

a bike worth 60000/- was given to our staff and2000/- will be deduct from his salary in 30 Months on monthly basis. his salary is15,000/- P.M

Rahul Gupta

Rahul Gupta (Expert)

14 January 2011 Entries will be >

1. On purchase of Bike >

Employee Advance....Dr 60,000
To Bank/Cash........Cr 60,000

2. On Monthly deduction
Salary A/c.........Dr 15,000
Bank/Cash..........Cr 13,000
Employee Advance...Cr 2,000

Regards

Message likes : 1 times

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

15 January 2011 In case the bike has been purchased by the company in its own name and transferred later to the staff then following entries may be done-

Bike A/c...........Dr. 60000
To Cash / Bank A/c ..Cr 60000

Salary A/c.........Dr 15,000
Bank/Cash..........Cr 13,000
Advance Against Bike A/c ...Cr 2,000

in this case bike will be transferred to the employee when the entire payment will be received. At that time following entry will be done -

Advance Against Bike A/c ....DR.60000
To Bike A/c....................60000

Company will claim the Depreciation in this situation , and if there is no asset in the said block , excess will be transferred to Profit on sale of Bike. (STCG)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now