Question

a businessman has employed sonu and had estimated his value at rs 10,000 he has accounted it as an asset in the books of account is he correct i doing so??​

Answer 1

Answer:

accounted it as an asset in the books of account is he correct i doing so??

Answer 2

The businessman is not correct as an employee and its salary are not an asset but a liability.

• Salary payable is the balance of the company's responsibility against its employees towards the services they render but not yet paid.
• Salary payable is a current account of liability that includes all of the balance or unpaid salary amount.
• Employees are not assets, because they are not owned by corporations and a corporation does not have any control over them. An employee can leave anytime as and when they want.