Sales made to staff in lieu of salary - how to account for

Accounting Entries 498 views 3 replies

Ashish

Proprietor

33 Points Posted on 17 June 2016

Hey

Our company operates a restaurant. Employees are allowed to consume food off the menu at 50% the rate. This food consumed is then adjusted from his/her salary at the time of payment. At the time of sale a bill is raised at the discounted rate. We use tally erp 9 to manage accounts and payroll. How do I account for this entry in tally epr 9. I tried passing a sales entry to Salary Advance Ledger (with the correct employee name) but this amount does not show as balance under the emplyees name when auto processing the payroll voucher. So how do I track sales to each emplyee and adjust the same when paying salary. Any help will be really appreciated.

Replies (3)

Jignesh

Student CA Final

40 Points Posted on 17 June 2016

Employee Account Dr (Discount Amount)

Cash Account Dr 50% (Cash Amount)

To Sales Account (Total Bill Value)

(Being Entry for Food Item Sold to the Emplyees)

Salary Account Dr (Discount Amount)

To Emplyee Account (Discount Amount)

(Being 50% Balance Discount Amount Set off Against the Salary of Employees)

As Actully thier is no discount given only mere name used.

Ashish

Proprietor

33 Points Posted on 17 June 2016

Thanks for the reply. I think you misunderstood me. The sale is made at 50% the rate for outside customers. The remaining 50% which the employee has to pay is adjusted towards his salary. So there is no cash involved in the sale. So how do we process this in tally.

Jignesh

Student CA Final

40 Points Posted on 21 June 2016

Sir,

I have one quary in your above reply, Why your resturent have been sold food stuff to Customer only @ 50% & Remaining 50% with which Employees has no concern settled against Salary of Emplloyees. So I can't understand your quary. If Possible then give some hypothicated i.e. fack figure of above Quary.