07 March 2009
Sir, I have query regarding on entry of salary, the eg entry is as follows.
salaries to staff 10 Dr salary payable 6 Cr ESIC emplyees cont 1 Cr PT payable 1 Cr Mobile expense 1 Cr recoveries from staff 1 Cr
my query is regarding crdit given to 'recoveries from staff' .this deduction from salary is on account of non performance of employess or any other reason . After passing this entry 'recoveries from staff' will reflect on crdit side of P&L, will this is correct ? Is I am passing correct entry ?, or there is any other possiblity or entry is available plz guide me & show me some eg entries. - thanks
07 March 2009
Recoveries from Employees on Account of Non-Performance is not your Business Activities and hence doesn't come in credit side of P/L becouse it shall be treated as your income it is my personal view that Salaries to Staff A/c should be Netoff of Recoveries and hence it should be Rs.9 Lacs only
08 March 2009
thanks, Shajad Sayyed for your view/opinion , I agree with your view & i will consider/incorporate it. thank again for your quick response
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