In our organisation we have stopped paying of Salaries to some of the Employees for the month of Mar'08. And the salary amount in our account has carried for the next Financial Year 2008-09. Our MD has given instructions those stop paid salaries are not to be paid as the employees have left the job without giving prior intimation to the organisation.
Now I want to know how the entry can be taken in the current Financial Year 2008-09. We already booked the expenditure in the F.Y. 2007-08 and the same carried for the F.Y. 2008-09 i.e., salaries payable 2007-08.
How the entry can be taken to nullify the salaries payable 2007-08 in the period 2008-09.
CAclubindia
