Tuition fee

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2013 SIR
I AM RUNNING A PROPREITORSHIP FIRM AND I AM PAYING RS 18000/- SALARY TO MY SON WHO IS LOOOKING AFTER MY BUSINESS AS MANAGER, NOW PLEASE EXPLAIN ME IF I PAID TUITION FEE OF MY GRANDSON ON BEHALF OF MY FROM MY CURRENT ACOUNT & ADJUSTED THE SAME FROM HIS SALARY, IS IT OK AS BOOK IS CONCERN, AND ALSO PROVIDE MY THE ENTRIES OF THE SAME IN THE BOOKS OF ACCOUNTS, PLEASE RESOLVE THE QUERY.

THANKS

MUKESH KUMAR

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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03 October 2013 Yes, you can do like that and entries are as follows,

at the time of payment of fees

Salary a/c dr
To Cash/bank a/c
(Being part of the salary paid to Mr.XXXXX by the way of payment of tuition fees of his child on behalf of him as per his instruction)

at the time of payment of balance salary

Salary a/c dr
To Cash/bank a/c
(Being salary balance payable to Mr.XXXX paid)

Instead of above entries you have another entries also.

When salary payable due

Salary a/c dr
To Mr.XXX
(Being salary for the period XXXX payable to him is credited to his account)

at the time of payment of tuition fees

Mr.XXXX dr
To Cash/bank a/c
(Being paid in the form of payment of tuition fees of child of Mr.XXXX on behalf of him as per his instruction)

and the time of payment of balance amount

Mr.XXX dr
To Cash/bank a/c
(Being amount payable to Mr.XXXX is paid)

OM SAI SRI SAI JAI JAI SAI