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Journal entry

Ashique Raza (28 Points)

25 October 2020

what will journal entry of salary if person 40% advance salary with EPF and esic adjustment

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4 Replies

prasad Nilugal ( GST Practitioner & Accounts ) (14805 Points)
Replied 25 October 2020

Suppose salary to Mr X is 50000/- , so Advance paid 40% is 20000/-

J. E will be

Advance Salary to X A/c Dr 20000/-

To Bank A/c Cr 20000/-

( Payment of Advance Salary )

Advance Salary A/c under loans & advances asset side balance sheet

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Ashique Raza (28 Points)
Replied 25 October 2020

Thank you
but my question was what would jv of salary with epf and esic, when the employees had already received 40%of advance salary.

Also please tell what is the update EPF AND ESIC rate of employer and employee

prasad Nilugal ( GST Practitioner & Accounts ) (14805 Points)
Replied 25 October 2020

Entry for Balance Salary payment with deductions of ESIC & EPF as no deductions were made at time of advance salary as per your query .

J.E as per above example

Booking entry

Salary A/c Dr 50000/-

To Salary Payable to X A/c Cr 50000/-

( Salary payable )

Payment entry

Salary payable to X A/c Dr 50000/-

To Advance Salary to Mr X A/c Cr 20000/-

To Bank A/c Cr 25800/-

To EPF A/c Cr 2850/-

To ESIC A/c Cr 1350/-

( Balance salary paid after deductions form balance salary )

Payment of ESIC & PF to GOVT account

EPF A/c Dr 2850/-

ESIC A/c Dr 1350/-

To Bank A/c Cr 4200/-

( Being payment of EPF & ESIC to GOVT account )

Kutub Hamid (118 Points)
Replied 26 October 2020

Esic - 0.75% employee contribution
. . . . . 3.25% employer contribution on wages paid/payable

EPF - - 12 % employee and employer 12%
for current rate changes (for certains months in pandemic) from 12% to 10% pls refer EPF circular

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