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Cash basis accounting

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Querist : Anonymous

Querist : Anonymous (Querist)

13 July 2016 In cash basis accounting how to maintained following accounting for salary:

Salary entry :
Month of March
Paid in April
so we book salary entry in April

Salary A/c ---------- Dr.
To Employee A

Employee A A/c................Dr.
To Cash/Bank

so in form 16 its consider as April because of payment month
Same amount reflect in salary slip for march

so how to match salary slips and form 16

Amol S Joglekar

Amol S Joglekar (Expert)

13 July 2016 once and for all decide by yourself that you are following CASH system of accounting. Fill the form 16 accordingly... (Govt is following this procedure for last many many yers...) Feb 2016 salary paid in March 2016 is shown in the year 2015-16.....
March 2016 salary paid in April 2016 goes to next year i.e. 2016-17.

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