09 April 2008
1)if some body resigned from company on Feb`08 but Full & Final payment(with notice period salary) has done on april`08, then how to enter this transaction in books?
2)please give any format for monthly salary entry format which includes all bifurcation e.g.basic pay+DA+Conv.allw.+HRA+PF (both employee+emplyer ded.)with TDS ded.
09 April 2008
DEAR ANSHUMAN, YOU HAVE TO CREATE SIMPLE JOURNAL ENTRY OF SALARY 1. FOR SALARY DUE ENTRY SALARY DR TOTAL SALARY AMT FUND PAYABLE - EPF EMPLOYEE CONT TO PF FUND PAYABLE - ESI EMPLOYEE CONT TO ESI TDS PAYABLE - SALARY TDS DEDUCTION ADVANCE TO STAFF ADVANCE IF ANY NOTIC PAY RECD NOTICE PAY DEDUCT SALARY PAYABLE NET SALARY PAYABLE
2. FOR EMPLOYER CONTRIBUTION TO FUNDS EMPLOYER CONTRIBUTION TO FUND DR FUND PAYABLE - ESI AMT EMPLOYER CONT FUND PAYABLE - EPF AMT EMPLOYER CONT.
NOW THESE STATUORY DUE IS PAID IN TIME. SALARY RELATED TO SUCH EMPLOYEE IS OUTSTANDING IN BOOK OF ACCOUNT. IN APRIL SALARY PAYABLE DR TO BANK
10 April 2008
THE SALARY DUE ENTRY AS ADVISED BY SRI BANSAL ABOVE IS REQUIRED AS ON 31 ST MARCH, BECAUSE THIS ENTRY WILL ENSURE BOOKING OF THE TOTAL EXP. FOR THE FIN. YEAR DURING THE YEAR ITSELF. AGAINST THIS DUE ENTRY ON 31 ST MARCH, THE ACTUAL PAYEMENT ENTRY WILL BE MADE IN APRIL. R.V.RAO
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