Journal entry for Remuneration. Bank payment to Remuneration payable.

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This discussion clarifies the accounting treatment for remuneration payments. It explains the journal entries for paying remuneration and clearing the remuneration payable account. The core issue is how to reflect total remuneration on the capital account's credit side after it's been paid from the business bank account. The advice suggests that if remuneration has already been paid personally, it cannot be directly credited to the capital account without first reintroducing the funds to the business.

Shailesh Desai

Shailesh Desai (Querist)
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30 November 2022 JV passed for Remuneartion paid . Bnak entry passed against Remuneration Payable.
Then How to Show Total Year Remuneration amount in Capital Account Credit Side.
1] Remuneration Paid A/c--------------------------------------------------Dr
To Remuneration Payable
2] Remuneration Payable A/c ---------------------------------------------Dr
To Bank
Then at the end how to show in Capital A/c Credit side. Because bank paid against payable.

CA Punit

CA Punit (Expert)
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11 December 2022 Is is proprietorship or partnership?

As its already paid and out of your business bank account to your personal account then you can bring back by transferring it to your business account and then credit the capital.