Sir, Plz suggest me accounting entries for salary received in books of empoyee.
Gross Salary Received : Rs 20000
Employee Contribution to PF : Rs 2500
Employer Contribution to PF : Rs 2500
Professional Tax : Rs 110
Net salary : Rs 14,890
Bonus Received : Rs 5000
please let me know the journal entries in the books of employees.
Bank a/c 19,890
EPF a/c 5,000₹
PT a/c 110₹
To bonus 5,000₹
To salary a/c 14,890₹
How much salary should be shown on capital side.
Is salary shown in capital account include Employer+employee Contribution ?
Shall i include both Employer+employee Contribution in assest side ?
Capital account is not involved. I got it, you are writing for company right?
Net Salary a/c 14,890
Epf a/c 5,000
PT a/c 110
Bonus a/c 5,000
To payables a/c 25,000₹
https://www.accountingcapital.com/journal-entries/journal-entry-for-provident-fund/
the above is for epf treatment
https://www.caclubindia.com/forum/profession-tax-entry-109274.asp
this is for pt treatment. His is more appropriate in company books,
Employer contribution is shown in the current liabilities side of the balance sheet.
https://www.svtuition.org/2011/05/employers-contribution-payroll.H T M L
you cannot include in the asset side. They are both payables to pf organisation and expenses to company. But I will check out tomorrow and get back if anything changes.
Some of the payroll entries I know:
By Salary
By Allowances
By Company contributions
By Admin charges to EPF
To Salary payables.
CCI
Pro
CAclubindia
