Dear Sirs,
Can Anyone suggest me that what entry should be passed in tally for Employee Salary where ESI & EPF has been deducting from salary & also employer contribute in ESI & EPF as well as.
for ex.
1. Salary- 8000.00
2. ESI- 140.00
3. EPF- 780.00
4. Payable (1-2-3)- 7080.00
5. ESI- 380.00
6. EPF- 780.00
where 2 & 3 is employee contribution and 5 & 6 is employer contribution.
Salaries A/c Dr 9160
To Salaries payable A/c 7080
To ESI Payable A/c 140+380
To EPF Payable A/c 780+780
When Payment is done payable Account is Debited & Bank or Cash account is Credited
Due Entry
Salary a/c Dr 8000
To ESI Payable
Employees Contribution 140
To EPF Payable
Employees Contribution 780
To Salary Payable 7080
(Any advance received by employee should also deducted)
Payment entry
ESI Payable
Employees Contribution Dr 140
ESI on Employer Contribution Dr 380
EPF Payable
Employees Contribution Dr 780
EPF on Employer Contribution Dr 780
Salary Payable Dr 7080
To Bank 9160
(ESI,PF on Employers contribution should booked as expenditure bcz actually it was not deducted, it is paid only at the time of depositing them and Employees contribution treated as Liability bcz it deducted from the salary)
CAclubindia
