jean (article assistant) (113 Points)
06 June 2012company was installing a machinery on the site and some of the existing technical employee of the company had work out during the installation.
the company is capitalizing whole of the salary (including hra, da, ta, PF,ESIetc) of related employee.
the entry done by the co is
P&m A/c dr
To basic salary cr
To hra cr
To Ta cr
To pf cr
etc
is it right ? thanks for your replay
saikiran
(CA)
(96 Points)
Replied 06 June 2012
If the employee is engaged completely throughtout the month then it is right because costs included directly attributable cost like professional fees paid to techinal or professional people.
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