Employee benefits (perquisites accounting)

This query is : Resolved

Mickey pants (Querist)
Follow

07 October 2016 Is this entry correct?

Employee benefits..........Dr
To EB Payable
(being, free accommodation provided to employee to the extent of rent)

Accounts Receivable........Dr
To Rent
(being accommodation rent due which was provided to employee)

EB payable ..................Dr
to Account Receivable
(being, perquisite set off)

IS this a correct way of accounting for perquisites or no entry should be made at all just perquisites need to be recorded in the salary sheet of employee for tax purposes.....

Thanks in advance

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

07 October 2016 This is NOT right. You can open perquisites account if you need to have the segregation of amount.
Debit Perquisite (Rent free accommodation)
Credit Rent payable (OR the Landlord)
when rent falls due

Debit Rent payable (OR The landlord)
Credit Bank
At the time of payment of rent (Subject to however, TDS if any, applicable)

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

Summarize this with AI

ChatGPT Perplexity Claude Google AI Grok

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

Dhananjay Singh

Hmr Babu

Mikilesh Shah

CA Jyoti Singh

Phani

Subscribe Now

Employee benefits (perquisites accounting)

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

GST CONSULTANT

CA Final

Accountant

Article Assistant

GST CONSULTANCY