I am looking for help regarding PPF entries to be made in the PPF accounts of two employees.
While one employee is getting a salary Rs. 10,000 p.m., the other gets Rs. 15,000/-. From their salaries, I have to deduct 10% & have to transfer 10% from the boss's account to PPF account.
Kindly clarify how I should di this- the condition is that the amount of PPF should be shown separately regarding both employees so that their PPM amounts and related transactions can be shown clearly at any time.

From India , Bhadohi
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)

From India , Madras
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.

From India , Bangalore
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