bonus provision entry

Answer Posted / amit kumar

Dr. bonus a/c
Cr. Payroll liability a/c

If we need to create provision for bonus or any expense, we dr that expense and create liability for the same in balance sheet.

At the time of payment, we do the below entry.

Dr. payroll liability a/c
Cr. Bank a/c

Is This Answer Correct ?    39 Yes 0 No



Post New Answer       View All Answers


Please Help Members By Posting Answers For Below Questions

sir i am working in construction company.we have more than one projects.i enter the attendance projectwise in payroll.if payroll autofill i want project wise salaries not overall

1484


what is tribal area allowance means

2710


Where I can Found Cost Reduction Techniques Implemented by Various cement Companies

1656


My company sent this party goods 62750 this goods is loss sundorbhan paribahan. how to create voucher

1751


what is cost unit n what is cost sheet?

1746






Tell me the stages of double entry system?

611


Define push down accounting?

607


Tell me in which account does the unpresented cheque will get recorded?

617


What can go wrong if you have a balance sheet with a lot of debt? What can go wrong if there is negative owner's equity? What does a good cash flow statement look like and why?

1473


What is the fictitious assets?

643


Journalize the Following: 1. The following were purchased on account: a. Materials $ 10,000 b. Office supplies $ 2,000 c. Small tools $ 1,000

1423


What is the networth percentage observe by banks

1581


What is the entry for closing stock value reduction?

2099


Why is it necessary to prepare Asset Disposal Account?

1465


What is the difference between a cash flow statement and an accural profit & loss account ? And why do simple organisations do not feel the need for a profit and loss type of statement ?

1625