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?
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
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
CAclubindia
