10 November 2009
if director gives cash to company : cash A/c Dr. To Directors Loan A/c if the co. takes money from employee's salary it means salary is not fully paid: Salary A/c Dr. XX (full amount) To Employee's personal A/c when part of salary paid- Employee's personal A/c Dr. XX (with amt. paid) To BAnk A/c the difference in amount of salary incurred and amount of salary paid will appear as a liability in the books of the co. Regards, Shakuntala m.Chhangani smchhangani@yahoo.com