Depreciation and pf entry in tally with heads

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J P SINGH (Querist)
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09 October 2013 hi.... 1.depreciation rate should i take as per co.act or it act.... 2.pf deducted from salary and paying the both contribution by single cheque.. in tally what entry should pass plz.. suggest me for the above query....

CA Pallav Singhania

CA Pallav Singhania (Expert)
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10 October 2013 Dep would be taken As per Companies Act..

For Salary Payable:

Salary A/c dr.
To Employee contribution to PF
To Professional Tax
To TDS on Salary
To Salary payable

Direct Entry for the Payment of PF:

Employee cont. to PF dr.
Employers cont. to PF dr.
To Bank a/c
( deposit entry )

Profit & Loss a/c dr.
To Employers Cotn. to PF

Payment of Salary:

Salary Payable
To Bank A/c
{Payment of Salary}

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Ganeshbabu K

Ganeshbabu K (Expert)
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10 October 2013 Depreciation in books can be done only with as per companies act rates
.
.
.
employer comtribution of pf(Expense) and pf deducted from salary(Current liability)
.
.
1)Dr.Salary A/c
Cr.ESI/PF/PT payable A/c[deducted from salary-emplyee contribution]
Cr.Salary payable A/c

(being statutory deductions from salary and salary entry made)

2)Dr.Employer contribution PF A/c
Dr.Employee contribution PF A/c
Cr.PROVIDEND FUND PAYABLE

3)Dr.providend fund payable A/c
Cr.Bank A/c
(Payment for pf)

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Tushar Desai

Tushar Desai (Expert)
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10 October 2013 agree with experts with 1 exception

@ Mr Aryan, please explain me for the sake of knowledge improvement.

Why should we Debit P & L ?

By far, I think the entry shown by Mr Ganeshbabu looks more appropriate.

CA Pallav Singhania

CA Pallav Singhania (Expert)
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10 October 2013 Employer contribution to be transfer to Profit & Loss Account as this is the expenses for the organization.

Profit and Loss Account Dr.
To Employer Contribution A/c Cr.

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