This is regarding the accounting of a school and charitable trust. I leared in April-14 that close to a lakh rupees were missing from actual cash. The accountant said that some vouchers were missing and he would complete the entry in 15days. After repeated remindrs and dead-line extensions I got from him in writing that it is his responsiblity to get the vouchers or the amount would be recovered from his salary. His salary was also put on hold since then. Now he has agreed that its his fault and I have from him in writing undertaking(on plain paper) to settle the amount (which is around the same amount).
Now, can I Debit his salary (month wise) for the period and settle a Credit entry to Cash in hand at year end, with reference to the accountant's letter in the narration? What would be its effect on no PF deduction for the period?Are there any other legalities to consider? Or is there a better way? Please help.
Thanks
CAclubindia
