I want make an entry of salary that company pay to their employees....
how many entries should be done?
First entry of salary payable and than when we pay it through cheque or we can make single entry....If pf and esic is deducted than i request the experts plz explain me with example of journal entry...
i) JOURNAL :
Dr. SALARY PAID - Rs. XXXXX
Cr. SALARY PAYABLE Mr. A - Rs. XXXXX
ii) PAYMENT :
Dr. SALARY PAYABLE Mr. A - Rs. XXXXX
Cr. BANK / CASH - Rs. XXXXX
iii) JOURNAL :
Dr. SALARY PAYABLE Mr. A - XXXX
Cr. EPF EMPLOYEE'S CONTRIBUTION - Rs. XXX
Cr. ESI EMPLOYEE'S CONTRIBUTION - Rs. XXX
iv) PAYMENT :
Dr. EPF EMPLOYEE'S CONTRIBUTION - Rs. XXX
Dr. ESI EMPLOYEE'S CONTRIBUTION - Rs. XXX
Cr. BANK - Rs. XXXX
(Note : I'm only show the employee's related details. Here also payable employer's contribution)
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