Driver Salary 2020-21

This query is : Resolved

Amandeep Singh (Querist)
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12 April 2021 Dear Sir,

We have hire a driver in May 2020. His fix salary up to March 2021 is Rs.77000/- ( eleven month @7000/-)
below entry in books of accounts in march month is correct or wrong.
Salary Account Dr.77000/- Indirect exp. ( Driver Salary 11 months)
Salary payable Cr. 77000/- ( Current Liability)

CMA Poornima Madhava

CMA Poornima Madhava (Expert)
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12 April 2021 The entry is correct but instead of a single entry for the whole year, it is better to make monthly entries i.e. as and when the salary accrues to the employee.

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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13 April 2021 exactly make monthly entry and is the driver is working without any salary for so long... and if paid then book the salary directly on monthly basis na

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Amandeep Singh

Amandeep Singh (Querist)
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15 April 2021 Thank you Madam
Thank you Sir