banner_ad

Payment of bonus to employees

Others 3211 views 6 replies

Dear All,

            A private company paid bonus to its empoyees through bank in the FY 2013-14. But the bonus belonged to the FY 2011-12. The Entries in the books were in the following manner,

                          Bonus for Employess A/c Dr.                xxx

                                  To Bank A/c                                          xxx

             "Bonus for Employees" was grouped under Indirect Expenses. Then doesn't it become the expense of Current year? The reason for late payment of Bonus was due to delay by the employees in depositing their cheques. Is it an extra ordinary item? Please explain whether this is a prudent accounting treatment.

Replies (6)

Did co. created a provision for bonus A/c in FY 2011-2012? if yes then this entry

has been correct i.e bonus payable a/c dr To Bank A/c.what Co. did?

Hi

 

Your entry is wrong, since every comany maked liabilty for bonus every year so payment need to be adjusted agast Provison it self.

 

Thanks

If they have created a provision in fy 2011-12, then they could have reversed the provision. But the bonus amount is debited as an expense and reflected in p & l A/c.

Bonus & Leave encashment paid to factory workers or labours is it a direct expense or indirect ?

Bonus is indirect Expenses...

If it is paid to factory workers also ?


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
26 May 2026
Audit executive

vdsr & co LLP

Chennai

CA Inter

View Details
Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
ARTICLESHIP 15 May 2026
ARTICLE ASSISTANT, TRAINEE AND PAID ASSISTANT

YOGESH KAPOOR AND ASSOCIATES

New Delhi

B.Com

View Details
Company
ARTICLESHIP 05 May 2026
ARTICLED ASSISTANT

JS ADVISORS

New Delhi

CA Inter

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
11 May 2026
CA Dropout

Patron Accounting LLP

Pune

CA Inter

View Details
Company
ARTICLESHIP 27 May 2026
CA Article Trainee

Rahul Dang & Associates-Chartered Accountants

Pune

CA Inter

View Details
Company
ARTICLESHIP 14 May 2026
CA ARTICLE

PRAVEEN GARG & CO

Faridabad

CA Foundation

View Details