Entries for salary provision
This query is : Resolved
04 December 2016
Hi,
For salary, ICWA materials suggest that an accrual type entry is to be passed.
Salary Dr(P&L)
Outstanding Salary Cr(BS)
Outstanding Salary(BS) Dr
Cash Cr(BS)
But have talked to certain people and they suggest that provision entry should be passed for Salary although similar to that of accrual.
Salary DR(P&L)
Provision for Salary CR(BS)
Provision for Salary Dr(BS)
Cash Cr (BS)
Quick thoughts would be appreciated.
Thanks
Navjeet
For salary, ICWA materials suggest that an accrual type entry is to be passed.
Salary Dr(P&L)
Outstanding Salary Cr(BS)
Outstanding Salary(BS) Dr
Cash Cr(BS)
But have talked to certain people and they suggest that provision entry should be passed for Salary although similar to that of accrual.
Salary DR(P&L)
Provision for Salary CR(BS)
Provision for Salary Dr(BS)
Cash Cr (BS)
Quick thoughts would be appreciated.
Thanks
Navjeet
04 December 2016
Provision is made for the known loss or liability where amount can not be ascertained. In case of salary for the previous month, normally the amount can be calculated and ascertained correctly and therefore it become an Outstanding Expense
04 December 2016
In general and practically, Outstanding Salary account is opened and the same is being debited.
Provision is a term being used in that context.
Provision is a term being used in that context.
Message likes :
1 times
20 December 2016
Thanks friends...appreciate your thoughts..
Cheers
Navjeet
Cheers
Navjeet
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- TDS 194-T applicability
- GST ITC REVERSE
- Fixe term employment
- Is any professional CA is here please reply
- RCM ISSUE ON RENT AND TRANSPORTATION CHARGES
- Putting a heading on received mail
- Gift Received from nonblood relative
- Reprocessing of rectification order AY 2025-26
- Section 50-fixed asset-->building ceases to exist
- EXPORT BILL UNDER LUT FREIGHT CHARGE INCLUED IN INVOICE IT LIABLE TO TAX
- Regime change
- Consolidated financials
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- STATUTORY AUDIT OF A SMALL PRIVATE COMPANY INCORPORATED ON 28.03.2025
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
- How to pay remaining amount of TDS after due date?
- Resigning a auditor from the company for misconduct
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
