We have hire a driver in May 2020. His fix salary up to March 2021 is Rs.77000/- ( eleven month @7000/-) below entry in books of accounts in march month is correct or wrong. Salary Account Dr.77000/- Indirect exp. ( Driver Salary 11 months) Salary payable Cr. 77000/- ( Current Liability)
12 April 2021
The entry is correct but instead of a single entry for the whole year, it is better to make monthly entries i.e. as and when the salary accrues to the employee.
13 April 2021
exactly make monthly entry and is the driver is working without any salary for so long... and if paid then book the salary directly on monthly basis na
CAclubindia
