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Salary booking

Accounting Entries 234 views 3 replies

Hi ,

 

One of my friends company booking salaries as per below:-

 

1. Employees Joined after 20 will not get salary and cost will also not booked but PF contribution is booked in Current month.

2. IN next month he is booking the cost of 40 Days is this a right practice as per AS?

 

 

 

Replies (3)
No.....
they need to follow mercantile system of accounting. so they need to book salary expenditure on 31st March itself.
No, the salary expense must be booked in the respective year of being due itself.


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