P.tax on sallary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

26 February 2012 please suggest how to pass entry when professional tax paid by employer.

how it's effect will be in accounts

it's urgent

thanking you

Guest

Guest (Expert)

27 February 2012 Pass the following entries-
1. Entry for booking expense-
Salary a/c Dr. ( Amt of salary)
To P Tax payable a/c
( Amt of P Tax)
To salary payable a/c
( net amt payable to employees after deducting P Tax)
2. Entry for payment-
P Tax payable a/c Dr.
Salary payable a/c Dr.
To bank a/c.