Journal Entries

Hi

It is an expense to the company i.e Staff Welfare expenses, since they are providing on vacations.

Yes Your friend can create a provision based upon joining dates and reverse it as and when expensed.

The fair depends upon the areas of the employees choose for go for vacations and the policy of the Company (whether air fare or any other equivalent fare) multiplied by the number of Employees. The provision is applicable on the day of join of the employee.

Hope you followed.

Regards

DEVI

Staff Welfare A/c debit

To Provision for Staff Welfare

(being a provision is created)

Provision for Staff Welfare  a/c Debit

to Staff Welfare payable

(being for the amount payable -due in this year)

if paid

Staff Welfare payable a/c debit

to Bank/cash a/c

(being the amount paid as and when due with exact amount)

Hi  Raj...

Hope you are clarified with the above explanation.

Regards

Devi