P.F & E.S.I.C

This query is : Resolved

jitendra singh (Querist)
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12 July 2010 Dear Sir,

Thanks for your Reply. But Actuly my problem is not comlete here, because P.F & Esic both are Employees contribution is paid to the goverment & employers contribution is Shown in Profit & Loss Account.

Here is problem create if i create ledger pf & Esic under Current liablities it appear in balance Sheet not P/L Account.

CA SMR

CA SMR (Expert)
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12 July 2010
A hypothetical example is given below.

Gross Salary Dr 1200
Employers' contribution to PF & ESIC Dr 200
To Salary Payable 1000
To PF & ESIC Payable 400

Here, first two account heads are expense accounts affecting P&L and next two are account heads under current liabilities.