If one person has been paid excess salary in particular month. In next month we want to deduct the excess given in last month what will be the entry, Assume: excess given 2227 This month details : Gross 20058, PF 780, PT 200, and net must be 16851 all effective figures must consider in entry.
6 Replies
Gaurav Singh
(student)
(496 Points)
Replied 07 November 2011
In my opinion,excess shall be taken as advance.Because salary is a term of contract.......
Deepak Gupta
(CA Student)
(15922 Points)
Replied 08 November 2011
| Originally posted by : Bhavesh C. Vyas | ||
 |
If one person has been paid excess salary in particular month. In next month we want to deduct the excess given in last month what will be the entry, Assume: excess given 2227 This month details : Gross 20058, PF 780, PT 200, and net must be 16851 all effective figures must consider in entry. |
 |
When you paid excess salary of 2,227 to the employee, there will be debit balance in his/her account.
1) Advance Salary A/c............Dr. 2,227
To Employee A/c..................................................2,227
2) Salary A/c...............Dr. 20,058
To P/F.............................................................780
To P/Tax..........................................................200
To Advance Salary........................................2,227
To Employee A/c........................................16,851
3) Employee A/c.............................Dr 16,851
To Cash/Bank............................................................16,851
If you don't pass the first entry and credit employees account with 19,078 (20,058-780-200), then the net balance of the account will automatically be adjusted and balance outstanding will be shown as 16,851. But it will be better to pass the first entry, as it will give you more clarity later on.
Bhaskar Unnikrishnan CPA CMA
(Accounts / Administration)
(414 Points)
Replied 08 November 2011
Good explanation by Mr. Deepak...
hemant vaishnav
(2 Points)
Replied 11 December 2022
Kisi ko galat salary paid kiya or WO return account me diposit hua to uski entry kese karenge
Recent Topics
- Urgent doubt on GST
- Profit or Loss on Sale of Assets Accounting treatm
- Clarification on RCM on Rent Payment for QRMP Deal
- Reclaimed itc in gstr9
- Gamification in Accounting Software: Boosting Enga
- I want to knw Hsn code and gst rate of resin produ
- Schedule FA clarification
- Income tax on freelance income from crypto
- ITC temporary reversal and reclaim
- Query on Transactions
Related Threads
CAclubindia
