Accounting entry

In my opinion you can treat it as wages.

Accounting Entries for advance wage :

1)   Advance Wage A/c     Dr  (Current asset)

           To Bank A/c

(Being advance wage paid to xxxxxx (person name) )

2) If you want to create Provision at due date of payment:

Wages A/c        Dr (Indirect expenses)

   To Wage Payable A/c (provision)

(Being Wages payable on xxxxxx(month ending date) )

3) When Payment of wages made:

        Wage payable A/c       Dr

                To Bank A/c

                To Advance Wage A/c

(Being Wages Paid and advance amount of wages adjusted)

when u pay in advance...

Advance wages a/c....dr 

to bank/cash 

when it becomes due (when he does the work and the wage is "earned")

Wages a/c....dr

to advance wages.

thanks for the reply. so it is under head Wage in trading account , ryt???

yes trading account debit side...

thanks Mr. Manikanth have stated that wages - indirect expense. wages to Direct expense is ryt?

Sorry, wages is direct expense

wages are direct expenses.

hi,

we also took travelling expense to that employee for project work, So which head it must accounted. direct or indirect ??

Direct expense.

its a part of salary..

but its apart from salary which we have paid, which head??

conveyance....it can be taken as direct expense as it is an imperative cost to the project