Bonus inclusive of salary

This query is : Resolved

Honey Valecha (Querist)
Follow

17 November 2014 Dear All,
If my salary is inclusive of bonus then what will be the journal entry for the same ?/

Also let me know whether the effect of such salary wil be under the head salary only in Balance Sheet or separate head wil be effected & if yes what wil be that separate head ??

CA Parul Saxena

CA Parul Saxena (Expert)
Follow

17 November 2014 In your books of accounts
Bank Dr...........................
To Salary...............................
To Bonus.................................

Bonus will be taxed under the head Salary.

Honey Valecha

Honey Valecha (Querist)
Follow

17 November 2014 Dear Parul,
if my salary is inclusive of monthly bonus then what wil be its Journal enntry ??

& such bonus wil be shown separately or inclusive of salary in balance sheet ??

Upgrade to CAclubindia Pro. Subscribe Now!

CA Parul Saxena

CA Parul Saxena (Expert)
Follow

18 November 2014 First please confirm which books you are talking about yours or the company's?????

In Balance Sheet it will be separately mentioned under the head Employee cost

Honey Valecha

Honey Valecha (Querist)
Follow

19 November 2014 hi parul,
its the company books & bonus matter relates to employees , so if the employees salary is inclusive of monthly bonus how it will be accounted in books of accounts & what will be the final effect in balance sheet ??

CA Parul Saxena

CA Parul Saxena (Expert)
Follow

19 November 2014 In companys books of accounts:-
Salary Dr.........
Bonus Dr.......
To Bank

In Balance Sheet:-
Under Employees cost
Salary............................
Bonus.............................
Total................................

Honey Valecha

Honey Valecha (Querist)
Follow

19 November 2014 Dear parul,
thank you for your guidance.

If we have to hide this 'bonus'word in our books of accounts what wil be other word we can use for the same ??