Entry of employee salary

i) JOURNAL :

Dr. SALARY PAID - Rs. XXXXX

Cr. SALARY PAYABLE Mr. A - Rs. XXXXX

ii) PAYMENT :

Dr. SALARY PAYABLE Mr. A - Rs. XXXXX

Cr. BANK / CASH - Rs. XXXXX

iii) JOURNAL :

Dr. SALARY PAYABLE Mr. A - XXXX

Cr. EPF EMPLOYEE'S CONTRIBUTION - Rs. XXX

Cr. ESI EMPLOYEE'S CONTRIBUTION - Rs. XXX

iv) PAYMENT :

Dr. EPF EMPLOYEE'S CONTRIBUTION - Rs. XXX

Dr. ESI EMPLOYEE'S CONTRIBUTION - Rs. XXX

Cr. BANK - Rs. XXXX

(Note : I'm only show the employee's related details. Here also payable employer's contribution)

As above ledgers under the groups like

1. SALARY PAID - INDIRECT / DIRECT EXPENSES

2. SALARY PAYABLE - CURRENT LIABILITIES

3. ESI / EPF EMPLOYEE'S CONTRIBUTION - CURRENT LIABILITY / PROVISIONS***

1) first  you  have book the  entry  before  payment  of  Salary 

2)  Then you book  deductions (P.F) (ESIC)  entry along with salary booking 

3 ) Salary payment entry  on the date of payment . 

4) Deductions ( P.F) (ESIC)  on the date of payment to GOVT . 

Originally posted by : Ankit
	sir what on which date should i make journal entry..? Month end or a day before payment

Salary payable entry on end of the month. Also provide ESI & EPF deductions on end of the month (at the time of salary payable entry)

Payment entry will be on date of Payments...

Originally posted by : Ankit
	Thnk you so much sir... Concept is almoat clear.... Sir i request you if you convert following scenario into journal entry along with date than i think it will be very very useful for me. Salary for the month of Fabsalary = 21000Pf = 1800Esic = 1800we pay salary on first of next month....

Salary for the month of Fab

salary Mr A = 21000

You mean... ---> Less : Pf = 1800 Esic = 1800. If Yes provide the following entries...

On 28/02 will be two entries as per Your understanding

Journal 1 :

Dr. Salary paid  - 21000

Cr. Salary Mr A - 21000

Journal 2 :

Dr. Salary Mr A - 3600

Cr. EPF - 1800

Cr. ESI - 1800

on Date of Payment 01/03

Dr. Salary Mr A - 17400

Cr. Cash / Bank - 17400

On date of ESI & EPF payment

Dr. EPF - 1800

Dr. ESI - 1800

Cr. Bank - 3600...

Also You can provide single entry for payable

Dr. Salary Paid - Rs. 21000

Cr. Salary Mr A - 17400

Cr. EPF - 1800

Cr. ESI - 1800

Why ESI Rs. 1800...?