What is Payroll ?
A payroll is a company's list of its employees, but the term is commonly used to refer to:
- the total amount of money that a company pays to its employees
- a company's records of its employees' salaries and wages, bonuses, and withheld taxes
- the company's department that calculates funds and pays these.
Payroll in the sense of "money paid to employees" plays a major role in a company for several reasons.
What is Salary ?
Salary is a fixed amount of money or remuneration paid to an employee by an employer in return for work performed. Salary is commonly paid in fixed intervals, for example, monthly payments of one-twelfth of the annual salary.
How to Enter Salary Entries in Accounts ?
Example: Arun is an Employee of VIDYA TV, His Monthly Salary is $3500/- He took some advance salary from Company of $1000/- on 15/09/2018. Here will see how to adjust salary advance against his September -2018 Salary.
In this scenario.
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Step-1 : Enter his salary advance Entry (Dated 15/09/2018)
Dr. Arun Salary Advance A/c $1000
To. Cash $1000
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Step-2:Book Month End Salary (Dated 30/09/2018)
Dr. Arun Salary A/c $3500
To. Arun Salary Advance A/c $1000
Arun Salary Payable A/c $2500
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Step-03:Salary Payment Entry (Dated 02/10/2018)
Dr. Arun Salary Payable A/c $2500
To. Cash $2500
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How to Pass this Entries in Tally ERP.9 ?
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