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.
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)
CAclubindia
