I dont totally agree with priyanka...Normally the preceeding months' salary is paid in the First week of the succeeding month...the organisations are passing a journal voucher to create a liabiblity on salary of the preceeding month which is as follows.....
Dr.Basic Salary
Dr.Dearness allowance
Dr.All other allowances like{HRA,Conv,Edu,Misc etc}
Cr.PF Payable
Cr.ESIC payable
Cr.Professional tax payable
Cr.Income tax payable. Cr.Other recoveries{Salary advance,Company/Bank/society loan,Festival advance etc}
Cr.Salary payable {Net Salary payable to the Employee}
At the time of payment of salary during the succeeding month, Organisations pass the folg entries in the Bank book / Cash Book while making the payment through Cheque / Cash......
Dr.Salary payable a/c
Cr.Bank a/c
Cr.Cash a/c.
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