If the salary is paid after reduction of advance taken by employee, then in receipts and payments account, will the amount of advance adjusted be shown on receipt side and gross salary on payment side or net salary paid on the payment side?
RAJA P M
("Do the Right Thing...!!!")
(128029 Points)
Replied 20 November 2017
Sridevi
(Accountant)
(380 Points)
Replied 30 November 2017
Better pass the Payment entry as below:
By/Dr X Salary - Rs.10,000/- Actual Salary
To/Cr X Salary Advance - (-) Rs. 5,000/- Minus
-----------------------
To/Cr Bank or Cash - Rs.5,000/- Balance payable
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RAJA P M
("Do the Right Thing...!!!")
(128029 Points)
Replied 30 November 2017
satish
(teaching)
(2046 Points)
Replied 18 December 2017
for example salary to Mr X. is Rs. 50,000/-
as on 15/11/2017 X received salary in advance of Rs. 5,000/-
15/11/2017 entry is
salary advance A/c Dr. 5,000
To Bank/ cash a/c 5,000 (i.e. credited with Receipts and payments a/c)
on 30/11/2017 final payment of salary i.e. after adjustment of advance salary. (50,000 - 5,000)
salary A/c Dr. 50,000
To salary advance A/c 5,000
To Cash / Bank a/c 45,000
So 45,000 credited to Receipts and payments A/c and 50,000 debited to Incoem and Expenditure a.c
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