Accounts Entry

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)
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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

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CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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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)