how the entry of salary should be make in account

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CA Vikas Agrawal (Querist)
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01 May 2008 dear sir,

if employer is paying salary under following structure and amount paid by bank through a consolidated cheque, then how they should pass entry in account :-

Basic 15000
HRA 6000
other all 4000
petrol 1000
mobile 1000
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27000
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whether a consolidate entry of rs. 27000 should be passed or for petrol & mobile he should make a separate entry

CA Hemant T Dewani

CA Hemant T Dewani (Expert)
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01 May 2008 gross salary paid to an employee if pt i tax is deducted this are shown seperately shown in the b/s & pay in time

CA Vikas Agrawal

CA Vikas Agrawal (Querist)
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Taxguy

Taxguy (Expert)
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02 May 2008 Does other all mean other allowances or what.

CA. Yayati Tyagi

CA. Yayati Tyagi (Expert)
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02 May 2008 In my opinion, you can go two ways:
1) debit salary a/c with 27000, company pays no FBT on petrol and mobile, employee pays income tax on 27000
2) debit conveyance a/c with 1000, telephone a/c with 1000 and salary a/c with 25000, comopany pays FBT on 2000, employes pays income tax on 25000
You can go either way, payment through consolidated cheque does not matter, still you can debit multiple accounts in a single entry.

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