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
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 )
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