22-Pension Contribution of Firm's Partner

334 views
User Avatar

Accounts Officer
563 Points Posted on 28 June 2023

Hi All Respected members,

Please educate me if a firm's partners are registered for pension and firm deposit contribution to the respective department, how it will be recorded in accounts ? Please share journal entry of it.

Thanks in advance for your precious time and efforts to reply this query. 

0 Reply Share Follow
On 28 June 2023 at 18:24 Report
Replies (5)
Quick Summary
This discussion explores the accounting treatment for pension contributions made by a firm on behalf of its partners. Members are seeking clarification on how to record these contributions, particularly when partners do not wish for the contribution to be treated as salary. The advice suggests that if the contribution is made in the partner's individual name, it should be debited to the partner's current account rather than being treated as a firm expense.

User Avatar

"Do the Right Thing...!!!"
77792 Points Posted on 28 June 2023
Pension contribution means where...??

Generally :

If firm make any amount based on partner's own name (individually) then it will be account to the partner's Current Account). It's not in the firm's expenditure account.
Reply
On 28 June 2023 at 20:34
User Avatar

Accounts Officer
563 Points Posted on 28 June 2023
Dear Raja PM Sir,

as you know that we deduct some amount from an employee salary and include some amount into it and deposit it to pension department but as far as partners of firm are concerned how we record it when we don't pay them salary and full amount of contribution amount deposit to pension department from firm account ?
Reply
On 28 June 2023 at 23:13
User Avatar

"Do the Right Thing...!!!"
77792 Points Posted on 29 June 2023
Well...

If the partner's salary amount deposited into pension scheme then it will be account as partner salary...
Reply
On 29 June 2023 at 08:14
User Avatar

Accounts Officer
563 Points Posted on 29 June 2023

Raja P M Sir,

Thanks for your kind response.

I would like to ask that if firm's partners don't want to consider this contribution amount as salary and asked Accountant to pay us agreed salary amount and record this amount in any other account, in this case what will be the treatment of this contribution amount ? 

Reply
On 29 June 2023 at 16:38
User Avatar

Accounts Officer
563 Points Posted on 04 July 2023

Raja PM Sir,

Your kind response awaited on above ? 

Reply
On 04 July 2023 at 18:44

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. How do you collect documents from clients for ITR
  2. GST ITC on Construction/ Tenant Specific Renovatio
  3. GST Treatment and Reporting of Share & Mutual
  4. AGM Defective Notice
  5. IMS Rejection of Sales and Sales return
  6. Taxation of Gift - Father to Daughter
  7. TDS on Property Purchased above 50lakh
  8. Accounting Treatment in Tally for Restaurant Sales
  9. Form 146 required
  10. Rule 86(B) Applicability

More recent discussions | Post

Related Topics :

Loading

Latest Job Openings

View all
Company
ARTICLESHIP 26 August 2026
CA Article Assistant/CA Drop Out/Accounts Executive

PARV & Co.

New Delhi

CA Inter

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details
Company
ARTICLESHIP 24 August 2026
Article Assistant

M/s.S.G.Salecha & Co.

Mumbai

CA Inter

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
15 September 2026
Client-site CA associate

Aditya Muley and Co

Mumbai

CA

View Details
Company
ARTICLESHIP 24 August 2026
Chartered Accountant Articles

Rohit KC Jain & Co

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 16 September 2026
CA Article Trainee

SR BAGAI & Co.

New Delhi

CA Inter

View Details
Company
08 September 2026
Semi-Qualified Assitant

Subrahmanyam & Sivudu CA Firm

Hyderabad

CA Inter

View Details