John (Accountant) (66 Points)
26 October 2010My salary statement has the following heads
Gross salary, LOP, PF, ESI, Profession tax, net salary
When I want to book a salary in tally, how should I do it? should I book in gross salary or in net salary? If in gross salary what is the entry to be passed?
Yogesh Shah
(Managing Corporate Finance)
(1051 Points)
Replied 26 October 2010
Hi John,
You have to pass a entry for GROSS SALARY.
All the deductions show as a 'LIABILITIES'. When your company will pay these amounts to respective bodies, then deduct liability created by that payment.
But I didn't get the logic why you wanna credit net salary to 'Provision for Salary'. Net salary directly go to Cash / Bank account. If you want to show 'Salary Payable' then simply pass journal entry as -
Salary Account DR
to Salary Payable A/c.
Rajesh
(Service )
(7576 Points)
Replied 27 October 2010
Entry for Salary Transaction should be done as per following:
At the time of Credit of Salary:
Basic Salary A/c Dr.
HRA A/c Dr.
Trpotation Allowance Dr.
Spl All Dr.
To PF A/c
To ESIC A/c
To Professional Tax A/c
To TDS A/c
To Salary Payable A/c
_______________________________________
At the time of Payment:
Salary Payable A/c Dr
To Cash/ Bank
RAMESH POLINENI
(ca)
(352 Points)
Replied 27 October 2010
At the time of credit of gross salary the entry is
salaries and wages a/c Dr
To BAsic pay
To Pf
To ESi
salaries and wages figure will directly goes to the prifit andv loss account to reduce pofit
And
at the time of payment debit all credit items to cash or bank account
We sdould show the gross salary transations in the tally books
Tushar Desai
(Manager - Finance & Accounts)
(834 Points)
Replied 14 June 2011
Hi John,
I agree with Mr Rajesh
jitender
(CA)
(103 Points)
Replied 07 December 2011
Basic Salary Dr.
Allowances Dr.
Company Contribution to EPF Dr.
Company Contribution to EPS
Administration Charges to PF DR.
Company contribution to ESIC Dr.
To EPF Payable
To EPS Payable
To ESIC Payable
To Professional Tax Payable
To TDS Payable
To Labour welfare fund Payable
To Loan to Employee
To Salary Advance to Employee
To Rent Recovery
To Canteen Expense
To Salary Payable
Ashish
(XYZ)
(86 Points)
Replied 16 February 2012
Rajesh is absolutely right!! Go ahead with what he has suggested.
Avi chopra
(ACCOUNTANT)
(88 Points)
Replied 29 October 2013
SIR, HOW TO DO JOURNAL ENTRY OF SALARY IN TALLY WITHOUT USING PAYROLL BUT WITH NAME
Pz.. help me
CAclubindia
