How can we post Salary, PF etc., can anybody tell me the entry

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How can we post Salary, PF etc., can anybody tell me the
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Question Posted / srinivas

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How can we post Salary, PF etc., can anybody tell me the entry..

Answer / taimoor akhlaq

Basically the employees benefits are the part of salary, in
case of provident fund there are different laws for
provident fund in different countries, in pakistan employer
is required to contribute equal to employees contribution.

when a salary is disbursed the following entry is passed by
the employer, while the employer retain the employee
contribution and pay him the net amount, but in actual the
expense to employer is the Gross Amount i.e 10,000(See
First Entry Below)

Salary Expense(Dr.) 10,000
Employee Contribution payable(Cr) 2,000
Cash/Bank (Cr) 8,000

Now the employer will contribute to the provident fund an
equal amount

Salary Expense - Employer P.fund Cont(Dr) 2,000
Employer contribution payable (Cr) 2,000

when the both contributions are paid to the fund
Employer Cont Payable(Dr) 2,000
Employee Cont Payable(Dr) 2,000
Cash/Bank (Cr) 4,000

however you can post the compount enty by merging the First
Two Entries.

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How can we post Salary, PF etc., can anybody tell me the entry..

Answer / deepak

1. at the time of salary booked -
salary a/c dr
to pf payable a/c
to salary Payable a/c

2. At the time of payment -
Salary Payable A/c dr
to Cash/Bank a/c
3. Employer Contibution -
PF Employer Cotibution Dr.
to PF Payable A/c

4. At the time of PF Deposit -
PF Payable a/c Dr
To bank/Cash a/c

Is This Answer Correct ?

1 Yes

1 No

How can we post Salary, PF etc., can anybody tell me the entry..

Answer / ashwin kumar

Gross Salary a/c dr to pf payable a/c to Accrued salaries
a/c
(Employee salary exp to company,pf deducted from the
employee,Salary payable to employee)
PF a/c dr to pf payable a/c(emplyer contribution of pf)

Accrual Salaries a/c dr,To Bank a/c(salary payment)
PF payable a/c dr to bank a/c(pf remitence)

Is This Answer Correct ?

5 Yes

6 No

How can we post Salary, PF etc., can anybody tell me the entry..

Answer / kamal

salary a/c dr
employer;s contribution a/c dr

To salary paable Cr
To employer contribution Cr
To Pf payble cr
(being salary provision passed for the particular month)

Is This Answer Correct ?

2 Yes

3 No

How can we post Salary, PF etc., can anybody tell me the entry..

Answer / praveen sharma

SALARY A/C 10000 DR.
TO EMPOLYEE P.F.A/C 1000 DR.
TO SALARY PAYABLE 9000 DR.

AT A TIME PAYMENT

EMPOLYER P.F. A/C 2000 DR.
EMPLYEE P.G. A/C 1000 DR.
SALARY PAYABLE A/C 9000 DR.
TO CASH A/C 12000 CR.

(BECAUSE EMPLOYER CONTRIBUTION IS A EXP. OF COMPANY AND
EMPOLYEE CONTRIBUTION IS A LIABILITIES OF A COMPANY)

Is This Answer Correct ?

4 Yes

8 No