Journal entry

salary paid-100
pf employer-10
pf employee-5
Esi employer-7
Rsi employee-3
what is journal entry
Replies (2)
Quick Summary
This discussion clarifies the correct journal entry for recording salary payments and associated deductions. It breaks down the accounting treatment for employee and employer contributions to PF and ESI, and also considers the broader costs associated with RSI (Repetitive Strain Injury) which can include lost productivity, legal fees, and increased insurance premiums. The entry aims to accurately reflect salary expenses, deductions, and payments to relevant parties.

I will go by,

Salary expense 

PF employee

PF employer

Esi 

Rsi expense

To Payables a/c

(RSI includes-lost salary, lost productivity via absence of a knowledgeable employee, additional salary costs for temporary employees, legal and medical specialist fees in the event of litigation, and increased insurance premiums caused by litigation.) I’m not sure about company having the right to claim health insurance. If that is facilitated, then, the treatment will differ for RSI.

 

Salary account dr. 100
to esi cont employee 3
to pf cont employee 5
to bank 92
2)
pf cont employer 10
pf cont employee. 5
Esi cont employer 7
esi cont employee 3
to bank. 25

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