salary provision entry

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Salary provision entry is passed on accrual basis when salary is incurred but not yet paid. Salary expense is debited and Salary Payable/Provision account is credited. It ensures expenses are recorded in the correct period, usually at month-end under mercantile system of accounting.

Querist : Anonymous

Querist : Anonymous (Querist)

08 August 2010 what is salary provision entry

Guest

Guest (Expert)

08 August 2010 debit to the salary expense account

and

credit to the expenses payable or provision for expenses account

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)

08 August 2010 Salary provision entry is the salary expenses we are providing in the same month as accural base, because generally Salary will be paid in the next month. so for this purpose we are providing the expenses for the related month

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Murtaza I Bhagat

Murtaza I Bhagat (Expert)

08 August 2010 yes,Provisional entry is the entry which in done when your accounting system is mercentile and mostly entry happened in march...
onemore thing If NGO has to claim grant then they always doing Provisional Entries to claim expenditure as grant.

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A. Sankaranarayana

A. Sankaranarayana (Expert)

08 August 2010 Salary A/c Dr.
to P.F. Employees Contribution
To ESI Employees Contribution
To PT Employees Contribution
to Staff Loan
to Payable Salary

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