AA-10 Adjustment of Overpayment of Overtime

1st senerio.

1 )overtime expenses Dr. 1000. (1st month)
Advance to staff ABC Dr. 500
Bank /Cash Rs. 1500

(2) Overtime expense Dr. 1000 ( 2nd month)
advance to staff Cr. Rs.500
bank/ cash Cr. 500

2. Senerio
Advance to staff Rs.1500 Dr.
Bank/ Cash Rs. 1500 cr.

overtime expense Rs. 1000 Dr
Advance to staff Rs. 1000 Cr. ( 1st month)

overtime time expense 1000 Dr.
Advance to staff 1000 Cr. ( 2nd month )

Advance to staff Rs.500 Dr.
Bank/cash Rs. 500 Cr.

Adjustment or overpayment of overtime.

Too many accounting heads will mislead & will make you frustrated. If it is against salary , you should book it the same  & if you paid more than it to the employee , debited it so that advance paid will be deducted from the next month .

Sandeep Jain Sir,

Thanks for your kind reply.

I want to know that if we already booked the entry of overtime expense by Rs.1500 and we realize after payment that we have to pay Rs.1000 then what to do ? should we remove that entry and follow entries which you mentioned in 1st senario or is there any other way ?

please must reply.

Audit trail is mandatory ?

Dear Sandeep Jain,

I am sorry. I don't understand about audit trail. Can you please elaborate ?

Sabyasachi Mukherjee, it is "Adjustment of overpayment of overtime". I want to know the procedure to handle the matter which I mentioned above.