Treatment of salary paid by group co.

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

20 August 2011 Initally Salary of employees of A (new)co. is paid by B co., which is a group co. but not subsidiary or holding co.
in B co.s a/cs, A............DR.1000
To PF 10
To PT 10
To Mr.Q. 80
Mr.Q ........DR.80
To Bank. 80
, entry is passed.
What should be the entry in A Co. ?
Mr. Q is working for A.co. but intially on pay roll of B.co.

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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25 August 2011 You need to debit salary account and credit company B a/c

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Querist : Anonymous

Querist : Anonymous (Querist)

27 August 2011 By what Amount?
And initally pf pt is deducted by B Co. so how to show salary in B a/c. becoz if salary is debited then liability to deduct will be of A but actually salary is deducted by B co.

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CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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28 August 2011 Total salary & PF amount need to be taken for entry,

the entry passed in B Company related to pf/PT need to be transfer to A and pay from there

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CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 I believe the A co. should pass the following entry

Salry A/c DR 100
To PF 10
To PT 10
To A Co. 80

CA Pushpendra Gaur

CA Pushpendra Gaur (Expert)
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27 September 2011 ther is no requirement of transfer of PF & PT to A co as it's employee deduction and is in the nature of the liabilty of teh co which can be discharged from B CO. Employer's contribution need to be transferred mandatorily

Querist : Anonymous

Querist : Anonymous (Querist)

12 October 2011 how can A co, credit by its own name in its book?

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