DEAR ALL,
HOW TO ACCOUNT THE SALARY ADVANCE A/c. I HAVE TAKEN AN
ADVANCE OF Rs.25000/-. I HAVE DEBITED SALARIES ADVANCE A/c
AND CREDITED THE PETTY CASH A/c in TALLY. I dont't know
whether it is correct or not. If correct, in my individual
ledger no entry is reflected. Alternatively, if I debit my
self and credit petty cash a/c it is reflected in the P & L
Account, but it is not an expense. and not reflected in the
balance sheet, but reflected in P & L. I think I need to
put a journal entry. Like debiting the salary account and
crediting the salary advance account. Is this correct or
not? Can any one help me please. my mail add:
cdvijay100@yahoo.co.in or kmlnkml@live.com
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Answer / snehal
Pravin a/c dr. 1000
To Salary Payable cr. 1000
(being advance salry paid for the moth Dec. 2011)
Salary Payablea/c dr. 10000
To Cash cr. 9000
To Pravin a/c cr. 1000
(bening part of salary given for the month of Dec 2011)
Pravin - Sundry Debtor - Current Assets
for better account nomeneclulture as salary advance to pravin as their are the cases where where different kind of advances are given to the same person
| Is This Answer Correct ? | 2 Yes | 0 No |
Answer / jakir khan
ACCOUNTING STANDARD POINT OF VIEW CORRECT ENTRY IS FIRST
DEBIT ADVANCE SALARY A/C & CREDIT CAS/BANK A/C AFTER AT THE
TIME OF PAYMENT OF SALARY ENTRY WILL BE DEBIT SALARY A/C &
CREDIT ADVANCE SALARY A/C.
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / m. yousaf
Journal entry:
Personal A/c Dr
Salary A/c Cr
Personal A/C will appear as Debtor in Balance Sheet
| Is This Answer Correct ? | 17 Yes | 23 No |
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From the following information you are to prepare a Cash Budget for the period from July to December 2008. (i) The estimated sales and expenses are as follows: June July Aug. Sep. Oct. Nov. Dec. Sales 35,000 40,000 40,000 50,000 50,000 60,000 65,000 Purchases 14,000 16,000 17,000 20,000 20,000 25,000 28,000 Wages & Salaries 12,000 14,000 14,000 18,000 18,000 20,000 22,000 Expenses 5,000 6,000 6,000 6,000 7,000 7,000 7,000 Interest Received 2,000 - - 2,000 - - 2,000 Sale of Fixed Assets - - 20,000 - - - - (ii) Sales are 20% in cash and balance on credit. 50% of the debtors are collected in the month of sales and the remaining in the next month. (iii) The time lag in payment of purchases and expenses is 1 month. However, wages and salaries are paid fortnightly with a time lag of 15 days. (iv) The company maintains a minimum cash balance of Rs. 5,000. The cash balance in excess of Rs. 7,000 is invested in government securities in multiples of Rs. 1,000. Short falls in cash balance are made good by borrowing from banks. The interest received as well as paid is to be ignored.
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Audit 
