AA-15-Stipend Under The Account Group/Head

All Respected Members,

Please educate me in which account group or head payment of stipend of trainee will be recorded ?

Thanks in Advance for your precious time and efforts to reply this query.
Replies (7)
Quick Summary
This discussion clarifies the accounting treatment for trainee stipends under the AA-15 scheme. It confirms that stipends should be treated as a form of salary expense. The recommended approach is to create a dedicated sub-group under the main 'Salaries' expense account for recording these payments, especially if they are regular. A sample journal entry is provided for clarity.

Stipend is a form of 'Salary' only.

Dear Dhirajlal Sir,

Thanks for your reply.

does it mean that stipend will record under the salary expense account ?

Further, please let me know what would be journal entry for stipend ?

Depends upon number of such entries and its repetitions.

If you need you can create sub-group under main group 'Salaries' and post stipend payments under the new subgroup under 'Stipend'

For such posting

Dr. stipend ABC Rs. XX

Cr. bank        Rs. XX

Dear Dhirajlal Sir,
 

Thanks once again for your kind response.

Please advise if any firm has 2 or 3 trainees; what would be better ? Craete a sub group account under salary group or record it in main salary account ? 

If they are regular/repetitive in nature go for sub group.

Dear Dhirajlal Sir,

Thanks for your reply. Now it's clear to me. 

My pleasure.                     

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