Urgent Please

Originally posted by : Pankaj Arora
	Dear All   Director of Pvt.ltd. company paid salary to staffs by Cash can we treat it as loan from director or maintain director’s current A/c. Please confirm the total salary paid by him Approx 2.50lacs for whole the financial year. Please confirm

 Hello Mr.Pankaj

In my opinion, salary paid to staff cannot be considered as Loan.

You need to have Bank account where your staffs or employees amount be credited.

If its small company, then too at least have a Salary Register to record the salary paid for respective

staffs for respective month. It needs to be accounted and shown as Salary paid in your profit & loss acct.

Other views welcome.

regards

Santosh Shah

Hii

I think if the director has paid from his own pocket then it can be treated as loan from directors.

HI Bharat

The company is rent out the premises for warehousing purpose and appointed two staff.

The salary of the staff paid by the director every month by cash please confirm how it accounted ?

Hi Pankaj

I think the Directors must want to make their payments secured and want to treat their payment as loan from Directors in the books of the company.