Loan is deducted from salary
This query is : Resolved
Ankit Bubna
(Querist)
14 August 2013
My client deducts the loan installment from the salary of the employee and therefore he debited the salary a/c with the net figure only. For Eg: Loan installment = 1000, Salary = 5000. After deducting the installment it passed the following entry:
Salary Dr. 4000
Loan to employee Dr. 1000
To cash/bank 5000
Is the above accounting correct?
Salary Dr. 4000
Loan to employee Dr. 1000
To cash/bank 5000
Is the above accounting correct?
Rupesh Jain
(Expert)
14 August 2013
YES IT IS CORRECT ENTRY
14 August 2013
hi
Entry seems to be wrong, If loan is deducted from Salary of Rs. 5000/- then Bank should be Credited by Rs. 4000/-
Entry would be:
Salary Debit 5000
..To Loan ...1000
..To Bank ...4000
Thanks//VaibhavJ
Entry seems to be wrong, If loan is deducted from Salary of Rs. 5000/- then Bank should be Credited by Rs. 4000/-
Entry would be:
Salary Debit 5000
..To Loan ...1000
..To Bank ...4000
Thanks//VaibhavJ
15 August 2013
you are right mr vaibhav
as the total salary will debited against loan received and bank(Cash) paid
as the total salary will debited against loan received and bank(Cash) paid
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