Hi all Does any one have the details regarding salary accounting and audit notes. Please share..... Regards Amar:icon10:
From India, Mumbai
Acknowledge(0)
Amend(0)
From India, Mumbai
Acknowledge(0)Amend(0)
Salary accounting is the part of financial entries for the salary payable recognition and salary payment made to the employees. The financial entries can be as follows:
1. Salary payment made simply and directly
Salaries & Wages A/c Dr
To Bank/Cash A/c Cr
2. Salary accounting where liability is recognized at the end of the salary due period and payment is done on a different date.
I. Salary accounting
Salaries & Wages (a) A/c Dr
To Salaries Payable (b) A/c Cr
II. Salary payment
Salaries Payable A/c Dr
To Bank/Cash A/c Cr
(a) Salaries & Wages is the aggregate of salary components to be paid to the employees.
(b) Salary payable is the accounting entry recognizing the salary payable liability.
3. Salary accounting and payment entries in cases where there is PF payable and others like Sodexo, etc., which are to be paid to third parties but the expense has to be recognized at the time of salary accounting consolidatedly.
Salary accounting - expense and liability recognition
Salaries & Wages A/c Dr (including PF and Sodexo part)
To Salaries Payable A/c Cr
To PF Employees Cont. A/c Cr
To PF Payable A/c Cr
To Sodexo Payable A/c Cr
Salary and other payments
Salary payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying salaries to employees)
PF payable A/c Dr
PF Employees Cont. A/c Dr
To Bank/Cash A/c Cr
(When actually paying to the PF authorities)
Sodexo payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying the Sodexo/contractors)
4. Salary accounting and payment entries in cases where there is PF payable and others like Sodexo, etc., which are to be paid to third parties but the expense has to be recognized at the time of salary accounting separately.
Salary accounting - expense and liability recognition
Salaries & Wages A/c Dr (excluding PF and Sodexo part)
PF Employer's contrib. A/c Dr
Sodexo (Meal Voucher) A/c Dr
PF EDLI & Charges A/c Dr
To Salaries Payable A/c Cr
To PF Employees Cont. A/c Cr
To PF Payable A/c Cr
To Sodexo Payable A/c Cr
Salary and other payments
Salary payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying salaries to employees)
PF Employees Cont. A/c Dr
PF payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying to the PF authorities which include Employees' contribution, Employers' contribution, and EDLI and other charges)
Sodexo payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying the Sodexo/contractors)
From India, Madras
Acknowledge(0)Amend(0)
11. Salary payment made simply and directly
Salaries & Wages A/c Dr
To Bank/Cash A/c Cr
2. Salary accounting where liability is recognized at the end of the salary due period and payment is done on a different date.
I. Salary accounting
Salaries & Wages (a) A/c Dr
To Salaries Payable (b) A/c Cr
II. Salary payment
Salaries Payable A/c Dr
To Bank/Cash A/c Cr
(a) Salaries & Wages is the aggregate of salary components to be paid to the employees.
(b) Salary payable is the accounting entry recognizing the salary payable liability.
3. Salary accounting and payment entries in cases where there is PF payable and others like Sodexo, etc., which are to be paid to third parties but the expense has to be recognized at the time of salary accounting consolidatedly.
Salary accounting - expense and liability recognition
Salaries & Wages A/c Dr (including PF and Sodexo part)
To Salaries Payable A/c Cr
To PF Employees Cont. A/c Cr
To PF Payable A/c Cr
To Sodexo Payable A/c Cr
Salary and other payments
Salary payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying salaries to employees)
PF payable A/c Dr
PF Employees Cont. A/c Dr
To Bank/Cash A/c Cr
(When actually paying to the PF authorities)
Sodexo payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying the Sodexo/contractors)
4. Salary accounting and payment entries in cases where there is PF payable and others like Sodexo, etc., which are to be paid to third parties but the expense has to be recognized at the time of salary accounting separately.
Salary accounting - expense and liability recognition
Salaries & Wages A/c Dr (excluding PF and Sodexo part)
PF Employer's contrib. A/c Dr
Sodexo (Meal Voucher) A/c Dr
PF EDLI & Charges A/c Dr
To Salaries Payable A/c Cr
To PF Employees Cont. A/c Cr
To PF Payable A/c Cr
To Sodexo Payable A/c Cr
Salary and other payments
Salary payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying salaries to employees)
PF Employees Cont. A/c Dr
PF payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying to the PF authorities which include Employees' contribution, Employers' contribution, and EDLI and other charges)
Sodexo payable A/c Dr
To Bank/Cash A/c Cr
(When actually paying the Sodexo/contractors)
From India, Madras
Acknowledge(0)Amend(0)
The information is given from simple to complex cases. The complexity increases as the number increases. It is possible that the first case itself suits some people. So there is no need to understand everything.
There are more complexities involved in the process of salary accounting when it comes to high-level accounting practices like providing for retirement benefits to employees based on actuarial valuation, etc.
From India, Madras
Acknowledge(0)Amend(0)
There are more complexities involved in the process of salary accounting when it comes to high-level accounting practices like providing for retirement benefits to employees based on actuarial valuation, etc.
From India, Madras
Acknowledge(0)Amend(0)CiteHR is an AI-augmented HR knowledge and collaboration platform, enabling HR professionals to solve real-world challenges, validate decisions, and stay ahead through collective intelligence and machine-enhanced guidance. Join Our Platform.
Salary-Note.doc
SALARY SHEET CALCULATION.xls
5s Check List Audit for workshops.pdf