Vinay Pisupati (Chartered Accountant) (110 Points)
26 June 2013How to account for the medical insurance premium paid for employees. Company is actually paying the entire amount of premium & then getting the amount payable (50%) from the employees. Company wants to deduct this amount from the employees? So, what is the accounting treatment.
Dimple
(.)
(252 Points)
Replied 27 June 2013
It should be like this:
Mediclaim Premium A/c Dr. (50% amount)
Employee A/c Dr. (50% amount)
To Bank/Cash (total amt. paid by company)
[Instead of debiting employee a/c you can also debit Salary o/s or salary payable accounting according to the accounting policies followed by the company]
CAclubindia
