nill
25 Points
Joined July 2011
Have few queries in epf accounting entries please clarify
First we have salary at 10000
Entry would be
A) Salary ac Dr 10000
To salary payable ac 8800
To employees contribution ac 1200
B)Employers contribution ac Dr 1200
To employers comtrinution payable ac 1200
C)Employers contribution payable ac Dr 1200
Employees contribution ac 1200
To bank 2400
D)p&l ac Dr 1200
To employers contribution payable ac 1200
E) p&l acc Dr 10000
To salary 10000
In these entries actually paid is 8800
But we debit to profit and loss with 10000 doesnt this amount to overstatement of expenses ?