Salary journal entries

216880 views 41 replies

My salary statement has the following heads

Gross salary, LOP, PF, ESI, Profession tax, net salary

When I want to book a salary in tally, how should I do it? should I book in gross salary or in net salary? If in gross salary what is the entry to be passed?
 

Replies (41)
Quick Summary
Salary should be recorded at gross amount with deductions like PF, ESI, TDS, and profession tax as liabilities. Entry: debit salary expenses, credit deductions and salary payable. On payment, debit salary payable and credit bank or cash.

Hi John,

 

You have to pass a entry for GROSS SALARY.

All the deductions show as a 'LIABILITIES'. When your company will pay these amounts to respective bodies, then deduct liability created by that payment.

 

But I didn't get the logic why you wanna credit net salary to 'Provision for Salary'. Net salary directly go to Cash / Bank account. If you want to show 'Salary Payable' then simply pass journal entry as -

Salary Account  DR

to Salary Payable A/c.

Entry for Salary Transaction should be done as per following:



At the time of Credit of Salary:


Basic Salary A/c         Dr.

HRA A/c                     Dr.

Trpotation Allowance   Dr.

Spl All                        Dr.

       To  PF A/c

       To ESIC A/c

       To Professional Tax A/c

       To TDS A/c             

       To Salary Payable A/c

_______________________________________


At the time of Payment:


Salary Payable  A/c  Dr

     To Cash/ Bank


At the time of credit of gross salary the entry is

                       salaries and wages a/c Dr

                                   To BAsic pay

                                   To Pf

                                    To ESi

  salaries and wages figure will directly goes to the prifit andv loss account to reduce pofit

                                               And

at the time of payment debit all credit items to cash or bank account

We sdould show the gross salary transations in the tally books

Dear John,

I am agree with Rajesh

I also agreed with Rajesh

I agree with Rajesh

Hi John,

I agree with Mr Rajesh

Hi Jhon,

Along with Mr. Rajesh.

 

Basic Salary             Dr.

Allowances              Dr.

Company Contribution to EPF Dr.

Company Contribution to EPS

Administration Charges to PF DR.

Company contribution to ESIC Dr.

         To EPF Payable

         To EPS Payable

         To ESIC Payable

         To Professional Tax Payable

         To TDS Payable

          To Labour welfare fund Payable

        To Loan to Employee

          To Salary Advance to Employee

           To Rent Recovery 

           To Canteen Expense

          To Salary Payable

I agree with Rajesh

salary a/c dr

cr salary payable

 

Rajesh is absolutely right!! Go ahead with what he has suggested.

I agree with rajesh            

SIR, HOW TO DO JOURNAL ENTRY OF SALARY IN TALLY WITHOUT USING PAYROLL BUT WITH NAME

Pz.. help me

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details
Company
25 June 2026
Accounts & Taxation Executive

Dindukurthy & Associates

Hyderabad

MBA

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
CA Articled Trainee And Paid Assistant

SKAA & Associates

New Delhi

CA Inter

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
29 June 2026
Accountant (Finance & Compliance)

TRIEYEZ

Kolkata

CA

View Details
Company
ARTICLESHIP 08 June 2026
Internal & Taxation Article

O P Bagla & Co LLP

New Delhi

CA Inter

View Details
Company
20 June 2026
Assistant Accounts Manager

Fintax Professionals

Gurgaon

CA Inter

View Details