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Receipts and payments account

Others 1318 views 9 replies

If the salary is paid after reduction of advance taken by employee, then in receipts and payments account, will the amount of advance adjusted be shown on receipt side and gross salary on payment side or net salary paid on the payment side?

Replies (9)
Create payment VCR as per salary...
Create Receipt VCR for the advance...
I mean how to present it in receipts and payments account out of the two ways?
can't understand...
Whether this is shown as net payment on payments side or salary on payments side and advance adjustment on receipts side?

Better pass the Payment entry as below:

By/Dr         X Salary            -             Rs.10,000/-       Actual Salary

To/Cr          X Salary Advance  -    (-) Rs. 5,000/-       Minus

                                                    -----------------------

To/Cr          Bank or Cash       -          Rs.5,000/-          Balance payable

                                                     ------------------------

Please member! I didn't ask about the journal entries. I asked about its presentation in the receipts and payments account.
You ll post full salary in Payment...
Also create the advance amount as receipt...
OK. I assume that you replied in context of this receipts and payments account: https://goo.gl/images/QGsrAf

for example salary to Mr X. is Rs. 50,000/-

as on 15/11/2017 X received salary in advance of Rs. 5,000/- 

15/11/2017    entry is

                     salary advance A/c Dr.      5,000

                               To Bank/ cash a/c                     5,000              (i.e. credited with Receipts and payments a/c)

on 30/11/2017 final payment of salary i.e. after adjustment of advance salary.  (50,000 - 5,000)

                      salary A/c               Dr.     50,000

                                To salary advance A/c             5,000

                                To Cash / Bank a/c                45,000

So 45,000 credited to Receipts and payments A/c and 50,000 debited to Incoem and Expenditure a.c

 


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