Accounting entries for salary payment?

Couldn't get what you want to ask specifically.... but generally entry would be:-

Salary a/c dr.....
            To Salary payable a/c.......

and on payment

Salary payable a/c dr....
            To Cash/Bank A/c........ 

If query is something else, then kindly elaborate your query in detail...

Thankyou sir, That is what I wanted to know and what would be the accounting heads in tally for the both the Salary a/c and salary payable a/c?

Acc. to me at the time when salary becomes due the entry would be

Salary A/c Dr

To Salary Payable A/c

and at the time of paying salary

Salary Payable A/c Dr

To Bank A/c

At the time of Credit of Salary:

Basic Salary A/cDr.
Allowance A/c Dr.
Spl All Dr.
               To PF A/c
               To ESIC A/c
               To Professional Tax A/c
               To TDS A/c
               To Salary Payable A/c/Outstanding Salary A/c

At the time of Payment:

Salary Payable A/c/Outstanding Salary A/c Dr
              To Cash/ Bank

Dear Divya,

accounting head for salary would be "expense" and salary payable would be "current liabilities"..

Thankyou all, I observed at my clients place  the accounting head for Salary Payable was Provisions...which was the reason for confusion. Thankyou :)

@ Ankit : Normally salary should be booked on last date of the month, It will be easier to make P/L & it gives clear picture about expenses of that month.

thanks sir. thanks for clearing my doubts

Hi

Salary is the basic expense in every company and thus must be precise and also have better presentation for better understanding. I hope following entry might help you in recording compensation.

1. For recording accrual of compensation the following entry can be passed in the P&L Statement:
By Salary Expenses a/c* Dr.
By HRA Expenses a/c Dr. 
By Spl. Allowances a/c Dr.          
             To Employee contribution EPF Payable a/c Cr.          
             To Employee contribution ESI Payable a/c Cr.          
             To Professional Tax Payable a/c Cr. 
             To TDS Payable a/c Cr.
             To Salary Payable** a/c Cr. 
(Being Salary expenses recorded)

*Salary expense a/c will be recording the Basic/Gross salary to be paid to employee exclusive/inclusive of all allowances given to him respectively.
** Salary payavle a/c will record the net amount of salary whiich shall be paid to the employee(s).

2. Record accrual of Employer's contribution in EPS / EPF / ESIC:
By Company Contribution to EPF expense a/c Dr.
By Administration Charges to EPF expense a/c Dr.                
             To Company's contribution EPF Payable a/c Cr
(Being EPF/EPS/ESIC expenses recorded)
 

3. Payment of Salary, EPS, EPF, ESIC:
By Salary Payable a/c Dr. 
By TDS Payable a/c Dr. 
By Employee contribution EPF Payable a/c Dr.
By Employee contribution ESI Payable a/c Dr.
By Professional Tax Payable a/c Dr. 
By Company's contribution EPF Payable a/c Dr  
                   To Bank a/c Cr.***
(Being compensation liability paid)

***You can credit employee payable account instead of Bank account if you want to bifurcate amount debited to each employee.