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Accounting

320 views 2 replies

Kumar

Accountant

224 Points Joined August 2008

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

Replies (2)

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

i did not understand the logic, why should the candidate suffer for any transaction between the placement co. and recruiting co.

Tribhuvan Aditya Singh

Student as well as Self-employed

3710 Points Joined September 2007

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.