Epf,esic

Hii,

Can someone please guide me on EPF and ESIC for educational institutions.  I find these always confusing. please tell me what are the accounting entries to be made for these and how to check these while in audit??? please help.

My second query is that whether educational institutions are registered under 12A as charitable?? If yes is there any exemption. friends plz guide me. 

Thanks in advance. 

Replies (2)

1. ESIC is deducted from salary(i.e employees contribution) so entry would be-

 Salary A/c Dr.

                         To Employees contribution to ESIC

                          To Bank

2. Entry for employers contribution to ESIC

a.Employers contribution to ESIC A/c Dr.

                         To ESIC Payable

 

b. Profit & Loss A/c Dr.

                   To Employers Contribution To ESIC

 

3. Entry for payment of both

ESIC Payable A/c Dr.

Employees Contribution to ESIC A/c Dr.

                                                      To Bank

 

Please also guide about the Audit .............

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