Ppf

pahuja_kamlesh

Sir,
I have to do entry in PPF account. How can i do it.

one staff getting a salary Rs. 10,000 p.m. & another Rs. 15,000.00 & from there salary i have to deduct 10% & have to trf 10% from boss account to PPF account. Kindly clarify. condition is that amt of PPF should be shown sepreately regarding both staff so that at any time i would clarify / show their PPF amount.

Sudha S

Re: PPF

Prepare an excel sheet month wise for PPF employees & employer contribution. It could be easier at the time of filing annual returns by preparing Form 3A & Form 6A.

For entries you can club the total amount and the entries would be
PPF a/c Dr
PPF a/c payable Cr
( At the time of deduction )

PPF a/c payable Dr
Cash / Bank a/c Cr
( At the time of remitting the PPF amount)

Regards
Sudha S

mystsm

Dear Ahuja

There are two components in this entry.

1st is the Employee Contribution - which is deducted from salary ( liability created to pay to PPF Authority.)
Entry for which is :

Debit : Salary for Rs 15000
Credit : Bank for Rs 13500
Credit : PPF Payable A/c for Rs 1500

2nd is the Employer's contribution which is treated as expenditure
Entry for which is :
Debit : Expenses - Employer's contribution to PPF : Rs 1500
Credit : PPF Payable A/c : Rs 1500

At the time of remitting the PPF amount to the Authority, the entry would be :

Debit : PPF Payable A/c for Rs 3000
Credit : Bank A/c for Rs 3000.

Hope this clarifies your doubt.

Regards...RK

pahuja_kamlesh

Thanks for your kind co-orporation and also requesting you to help me further
bye
kamlesh pahuja

Quote:

Originally Posted by Sudha S

Re: PPF

Prepare an excel sheet month wise for PPF employees & employer contribution. It could be easier at the time of filing annual returns by preparing Form 3A & Form 6A.

For entries you can club the total amount and the entries would be
PPF a/c Dr
PPF a/c payable Cr
( At the time of deduction )

PPF a/c payable Dr
Cash / Bank a/c Cr
( At the time of remitting the PPF amount)

Regards
Sudha S

pahuja_kamlesh

Thanks a lot for your kind co-operation and also requesting you to help me further

thanks with regards

Kamlesh pahuja

Quote:

Originally Posted by mystsm

Dear Ahuja

There are two components in this entry.

1st is the Employee Contribution - which is deducted from salary ( liability created to pay to PPF Authority.)
Entry for which is :

Debit : Salary for Rs 15000
Credit : Bank for Rs 13500
Credit : PPF Payable A/c for Rs 1500

2nd is the Employer's contribution which is treated as expenditure
Entry for which is :
Debit : Expenses - Employer's contribution to PPF : Rs 1500
Credit : PPF Payable A/c : Rs 1500

At the time of remitting the PPF amount to the Authority, the entry would be :

Debit : PPF Payable A/c for Rs 3000
Credit : Bank A/c for Rs 3000.

Hope this clarifies your doubt.

Regards...RK