banner_ad

Query on basis of accounting

261 views 5 replies
Dear all

how a Pvt Ltd company needs to book Employer contribution towards esi and pf, either on payment basis or on accrual basis as and when it book salary?
Replies (5)
On Accrual basis......
Even though its an exp do v need to book on accrual?
For Private Limited Company, Accrual basis of Accounting is mandatory.

Yes, It's our expenses, but before that first it's our liability to contribute to PF, ESIC ect.

All expenses we have to books on accrual basis E.g telephone bill, it's booked on bill date or on receipt of bill date as Expenses Dr... to BSNL Cr.
when afterwards we paid Than BSNL Dr ..to bank Cr.

E.g. #For PF/ESIC contribution :on accrual
(1).. Salary A/ C Dr..
To Employees A/C.
To PF/ESIC (Liability) A/c (Employees contribution)
To TDS ect....if any

(2)..PF/ ESIC( Expenses) A/c Dr. ( Employer contribution)
To PF/ ESIC (Liability) A/c

#When PF/ESIC payment Done :
PF/ESIC (Liability) A/c Dr. (both Employee plus Employer contribution)
To bank Account
Accrual basis
Always accrual basis...


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 02 May 2026
Senior Executive

hitesh chandwani & co

Pune

B.Com

View Details
Company
Featured 29 April 2026
Manager- Finance and Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 14 April 2026
GST CONSULTANT

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 13 April 2026
GST CONSULTANCY

Abhishek G Agrawal & Co.

Korba

CA Final

View Details
Company
Featured 28 March 2026
Accountant

Ashok Amol & Associates

New Delhi

B.Com

View Details
Company
Featured 28 March 2026
CA Final

Ashok Amol & Associates

New Delhi

CA Final

View Details
Company
Featured ARTICLESHIP 19 March 2026
Article Assistant

Gupta Sachdeva & Co. Chartered Accountants

New Delhi

CA Final

View Details
Company
Featured 14 March 2026
Associate CA

N N V Satish&co

Hyderabad

CA

View Details