PT paid entry in books

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254 Points Posted on 24 May 2021
A company has PT for the employee when there is loss of pay...
here the co has not paid the salarybto the employee but it has deducted the PT for the employee..
what will be the entry for pt paid ???
can I enter
salaries and wages a/c - dr
PT payble a/c...

is it right???
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On 24 May 2021 at 19:40 Report
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Quick Summary
This discussion clarifies the accounting treatment for Professional Tax (PT) when an employee has a loss of pay. It explains that PT should not be deducted if the salary falls below the PT threshold. The correct journal entries involve debiting Salaries & Wages and crediting PT Payable for the liability, and then debiting PT Payable and crediting Bank for the payment.

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Consulting and Advisory
19 Points Posted on 27 May 2021

yes, however PT should not be paid if salary is below threshold limit of PT

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On 27 May 2021 at 12:39
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CMA
13117 Points Posted on 27 May 2021

If there is no liability to pay salary, then no PT is payable.

However, entries would be:

For liability:

Salary A/c Dr

To PT Payable

For payment:

PT Payable Dr

To Bank

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On 27 May 2021 at 13:46
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254 Points Posted on 27 May 2021
Thank you
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On 27 May 2021 at 13:51

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