Ledger Name

This query is : Resolved

Shantanu Mahato (Querist)
Follow

04 June 2009 Dear Sir,
I am Accountant in an organisation in Delhi and also handles HR. I have opened the Salary Payable Ledger in the name of employees eg. Shantanu Mahato Salary A/c to keep record of each employees.At the last day of the month salary is booked to respective employees head and when payment is made the Employees Ledger is debited.

But somebody has told me that under GAAP the Ledger in the name of employees shall not be opened.

Is it true and if its true then where can I find this whole chapter regarding this issue.

Please help me.

Thanks

CA. Dashrath Maheshwari

CA. Dashrath Maheshwari (Expert)
Follow

04 June 2009 Hi,
GAAP is nothing but Generally Accepted Accounting Procedures, They don't ban anything, rather they provide he system of recording a transaction.
If you want to make employees control ledgers, you can.
I would like to suggest that creation of employees ledgers is not needed, instead you can create ledgers of those employees who has taken advances and group them under advances.
You can debit whole salary directly to Salary and wages a/c and attach the list made in excel/word etc. to the manual/printed voucher.
Regards,
DM