Entries for lumpsum payment of salary?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 September 2013 Hey all,

What would be the accounting entries normally passed if salary is not directly credited and debited to the respective employee's a/c- that is bulk salary due and payment entries for all employees?

CA Pallav Singhania

CA Pallav Singhania (Expert)
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14 September 2013 At the time of Credit of Salary:

Basic Salary A/c Dr.
Allowance A/c 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/Outstanding Salary A/c

At the time of Payment:

Salary Payable A/c/Outstanding Salary A/c Dr
To Cash/ Bank