Learner
74 Points
Posted on 29 June 2012
If you have disputes with your employees and you dont want to pay the salary payable as shown in the balance sheet .
It is the Court who will resolve the dispute. Upto the time period till the dispute case is pending with the court You
should show the amount of Salary Payable as "Contigenty Liability" at the foot of the Balance Sheet .
When You will win the case the amount of salary payable will be paid as
Salary Payable ..........Dr XXXXX
To Salary XXXXX
If you lost the case the entry will be
Salary Payable ..........Dr XXXXX
To Bank/Cash XXXXX