STAFF WELFARE A/C DR 700
TO INCENTIVES A/C 700
(being icentives provided to emoloyes)
P&L a/c dr 700
TO STAFF WELFARE A/C 700
(being expenditure transferred)
if incentives is not paid then,
Incentives a/c dr 700
TO Incentives payable a/c 700
(being liability created)
At the time of payment,
Incentives payable a/c dr 700
to bank/cash a/c 700
CORRECT ME IF I AM WRONG,
THANK U
If you know that the amount will not be claimed...then write it off....
1) just reverse the original entry
Incentive Payable a/c Dr.
To Incentives a/c
2) write it off
Incentives Payable a/c Dr.
To Sundry Balance w/off
the first one is a better treatment
CAclubindia
