PLACEMENT COMPANY IS CHARGING PLACEMENT FEE FROM THE COMPANY TO PROVIDE THE STAFF & ALSO MENTION THE CHARGES OF CANDIDATE IN THAT BILL
E.G.
PLACEMENT FEE 10,000/-
CANDIDATE CHARGE 2,000/-
CAN COMPANY RAISE THE PAYMENT BY CHEQUE FOR RS. 12,000/- & DEDUCT RS.2,000/- FROM CANDIDATE SALARY
IS IT CORRECT ACCOUNTING WHAT WOULD BE THE ACCOUNTING TREATMENT
PLEASE ADVICE
if i take your transactions correct then accounting entry is very simple.... just create a liab. of 2000 when paying 12000. and while paying salary adjust the 2000 and make net payment of salary.
CAclubindia
