07-04-2009, 05:10 PM
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by Omeir</i>
<br />This way the JV for 30.06 would
Salary exp 1000
Salary payable 1000
what would be the entry post 30.06 at the time of payment?
1) Salary payable 1000
It payabale 100
Bank 900
2) It payable 100
Cash 100
Is this entry correct?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Ali,
These entries are correct based on the suggestion of Omeir, i.e. IT is deducted at the time of payment.
However,
Before posting your second entry, you should pass the following compound entries,
1.
Salary Payable -------Debit
Each Individual employee account ----------Credit (Each employee will be credited with his/her gross amount of salary)
2.
Each individual employee account ----------Debit(Indicating actual amount of payment)
IT Related to each employee--------------- Debit(Indicating IT of each employee in her/her account)
IT payable -------------------------Credit (Indicate total WHT payable)
Bank / Cash -----------------------Credit ( payment to employees)
3.<b>Income Tax Payment</b>
IT payable ------------------------Debit
bank/ cash------------------------Credit
Best Regards,
<br />This way the JV for 30.06 would
Salary exp 1000
Salary payable 1000
what would be the entry post 30.06 at the time of payment?
1) Salary payable 1000
It payabale 100
Bank 900
2) It payable 100
Cash 100
Is this entry correct?
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
Dear Ali,
These entries are correct based on the suggestion of Omeir, i.e. IT is deducted at the time of payment.
However,
Before posting your second entry, you should pass the following compound entries,
1.
Salary Payable -------Debit
Each Individual employee account ----------Credit (Each employee will be credited with his/her gross amount of salary)
2.
Each individual employee account ----------Debit(Indicating actual amount of payment)
IT Related to each employee--------------- Debit(Indicating IT of each employee in her/her account)
IT payable -------------------------Credit (Indicate total WHT payable)
Bank / Cash -----------------------Credit ( payment to employees)
3.<b>Income Tax Payment</b>
IT payable ------------------------Debit
bank/ cash------------------------Credit
Best Regards,
