PF-entry
This query is : Resolved
20 April 2010
What is the entry incase of PF-Employer contribution.
1.it is also a part of salary or it should be shown separately. if it is a part of salary then the following entry in correct na
salary a/c dr
to salary payable a/c dr
to pf-employee share
to pf-employer share
if the above entry is not correct tell me hte correct one.
1.it is also a part of salary or it should be shown separately. if it is a part of salary then the following entry in correct na
salary a/c dr
to salary payable a/c dr
to pf-employee share
to pf-employer share
if the above entry is not correct tell me hte correct one.
20 April 2010
salary a/c Dr
House rent allowance Dr
Conveyance allowance Dr
Medical allowance Dr
salary payable Cr
EPF-employee share Cr
ESI-employee share Cr
House rent allowance Dr
Conveyance allowance Dr
Medical allowance Dr
salary payable Cr
EPF-employee share Cr
ESI-employee share Cr
20 April 2010
The following is a "safer" option
(1) SALARIES:
salary a/c Dr (Exclude PF & ESI of Mgmt and Employees)
House rent allowance Dr
Conveyance allowance Dr
Medical allowance Dr
To salary payable Cr
(2) RECOVERIES FROM EMPLOYEES:
Salary Payable Dr
To EPF-employee share Cr
To ESI-employee share Cr
(3) MANAGEMENT CONTRIBUTIONS:
PF & ESI Contributions Dr
To EPF-employer's share Cr
To ESI-employer's share Cr
Intention: Management contributes its share of PF & ESI from out of its (Mgmt) revenues but not by effecting recovery from employees
(1) SALARIES:
salary a/c Dr (Exclude PF & ESI of Mgmt and Employees)
House rent allowance Dr
Conveyance allowance Dr
Medical allowance Dr
To salary payable Cr
(2) RECOVERIES FROM EMPLOYEES:
Salary Payable Dr
To EPF-employee share Cr
To ESI-employee share Cr
(3) MANAGEMENT CONTRIBUTIONS:
PF & ESI Contributions Dr
To EPF-employer's share Cr
To ESI-employer's share Cr
Intention: Management contributes its share of PF & ESI from out of its (Mgmt) revenues but not by effecting recovery from employees
20 April 2010
Suppose someone's Salary is Rs. 50,000/- p.m.
P.F. Eployer as well as employee cont. is 12% each of Basic and D.A. so let it be 2,400/- for employer as well as cont. each.
But employer cont. of P.F. is not included in above Rs. 50,000/-
there is TDS deduction of Rs. 2,000/- and Professional Tax of Rs. 200/-
Then Accounting Entry will be:
Employer's cont. to PF Dr. 2400
Salary & Wages of Mr. X Dr. 50000
Salary & Wages Payable Cr. 45400
Employer Cont. to PF Payable Cr. 2400
Employee Cont. to PF Payable Cr.2400
TDS Payable(Salary) Cr. 2000
Prof. Tax Payable Cr. 200
When PF is deposited :
Employer Cont. to PF Payable Dr. 2400
Employee Cont. to PF Payable Dr. 2400
PF Payable Account Cr. 4800
And
PF Payable Account Dr. 4800
Bank Cr. 4800
P.F. Eployer as well as employee cont. is 12% each of Basic and D.A. so let it be 2,400/- for employer as well as cont. each.
But employer cont. of P.F. is not included in above Rs. 50,000/-
there is TDS deduction of Rs. 2,000/- and Professional Tax of Rs. 200/-
Then Accounting Entry will be:
Employer's cont. to PF Dr. 2400
Salary & Wages of Mr. X Dr. 50000
Salary & Wages Payable Cr. 45400
Employer Cont. to PF Payable Cr. 2400
Employee Cont. to PF Payable Cr.2400
TDS Payable(Salary) Cr. 2000
Prof. Tax Payable Cr. 200
When PF is deposited :
Employer Cont. to PF Payable Dr. 2400
Employee Cont. to PF Payable Dr. 2400
PF Payable Account Cr. 4800
And
PF Payable Account Dr. 4800
Bank Cr. 4800
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20 April 2010
Employer contribution need to show separate account called Employer PF Contribution. so entry may be
Salary A/c Dr
Emp.PF contribution A/c. Dr
Salary payable Cr
PF payable Cr
Salary A/c Dr
Emp.PF contribution A/c. Dr
Salary payable Cr
PF payable Cr
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