I have 3 interrelated questions, kindly tell detailed accounting entries of the following
1. Laptop of 1 lac purchased by company.
2. same laptop given to Sita (employee) for work from home and 50% of laptop amount will be deducted as Security from her next two month's salary.
3. TDS deduction calculation of SITA with respect to above deduction ? and its accounting treatment?
Purchase of Laptop entry
Laptop A/c Dr
Input CGST A/c Dr
Input SGST. A/c Dr
To Trade Creditor A/c Cr
( purchase of Laptop)
Laptop A/c under Non-current Asset , Balance-sheet
Salary A/c Dr
To Salary payable A/c Cr
To Security Deposit. A/c Cr
To TDS on Salary. A/c Cr
( Salary payable after deduction of security Deposit and TDS)
Security Deposit is Liability of Company to pay back to employee in future So , same will be shown in Liability side .
Thank you for your answer Mr. Prasad Nilugal.
after your second entry, What will be the Journal entry of security deposit refunded to Sita after 5 years?
Are her salary accounts will get affected or not ?
also if we plan to recover 50% of laptop amount as security. Do we have to keep that amount inclusive or exclusive of Gst ?
After 5 years refund entry will be
Security Deposit A/c Dr
To Bank A/c Cr
( security deposit earlier taken now refunded to employee as per the agreement )
Salary account will not effect , just pass entry as above and write all details in narration ,also you have issue Security Deposit receipt to employee while accepting deposit as documentary evidence . Discuss with your company CA as well in this regard .
CAclubindia
