Salary - can be negative

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ravi (Querist)
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22 September 2010 Dear All,

Please tell me, could we show negative salary in Trial balance. the company in which I am working, they have the corporate office in China for accounting work. in the trial balance they are showing negative balance under the head name *Offshore wages". is it possible.

thanks
Ravi Kant

CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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22 September 2010 It is possible.

Suppose in the month of March, an employee whose gross salary is 25000/-, but deduction on account of PF / TDS / other -advances comes to 28000/-, then it will be a negative salary payable.

The above was just a hypothetical case.

ravi

ravi (Querist)
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22 September 2010 could we deduct these Rs.3000/- (28000-25000) from gross salary expenses.

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CMA. Subhash Kumar Jha

CMA. Subhash Kumar Jha (Expert)
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22 September 2010 No... as its only an advance kind of thing, which will be recovered in the coming month.

So this 3000/- will appear in advances.