Sir
an employer do't contribute employee share of PF. He duducts amount from empolyee salary but he show in PF return as employer share. In this case how to mintain books of account of employer and what will be journal entry
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EPF/ESIC
Replies (12)
Your query is not understandable...
why it's not understandable.
| Originally posted by : Palak Jain | ||
 |
why it's not understandable. |  |
mmm Mam.,
How can I reply Your question...?
I'm not understand the query then How can I explain my view...?
This question is related to daily routine working of an accountant
| Originally posted by : Palak Jain | ||
|
This question is related to daily routine working of an accountant - Oh Okay Okay... |
|
This is the Query.,
Sir,
an employer do't contribute employee share of PF. He duducts amount from empolyee salary but he show in PF return as employer share. - Is this legally or Illeagally...?
In this case how to mintain books of account of employer - If above said way "Why employer maintain Books...?
and what will be journal entry
Please explain Madam, If it's valid transaction...
If we are talking about legal or illegal then it's depends on service agreement between employee and employer that salary of employee is based on ctc or gross salary
| Originally posted by : Palak Jain | ||
|
If we are talking about legal or illegal then it's depends on service agreement between employee and employer that salary of employee is based on ctc or gross salary | |
Sorry Dear...
I don't know accounting entry for the 1st query &
I'm not like discuss about your last reply...
If salary is based on ctc what will be journal entry
let say salary is 100/_ (90 gross+ 10 employer part) then 2 entry will be passed.
(1)
Dr salary 90
cr salary payable 80
cr employee cont pf 5
cr employee cont esi 5
(2)
Dr employer cont pf 5
Dr employer cont esi 5
Dr eployèe cont pf 5
Dr employee cont 5
Cr PF payable 10
cr esic payable 10
(1)
Dr salary 90
cr salary payable 80
cr employee cont pf 5
cr employee cont esi 5
(2)
Dr employer cont pf 5
Dr employer cont esi 5
Dr eployèe cont pf 5
Dr employee cont 5
Cr PF payable 10
cr esic payable 10
Madam,
Pls Can You give any reference for "EMPLOYER CONTRIBUTION OF ESI & EPF INCLUDE EMPLOYEE"S SALARY"...?
It is totally legal to include both EE & ER contribution to PF in ur CTC (makes it more attractive)...CTC is cost to the company for ur employment...it includes the employer's contribution to ur PF account..Company does not spend a rupee beyond ur CTC
the journal entry is pretty straight forward
I think the J.E. what palak gave is okay.
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