Question

journal entry for employee provident fund paid

Answer 1

1. When salaries are paid, the below entry is posted.

Salary a/c. Dr..

To bank a/c. Cr..

To provident fund reduction a/c.Cr..

2. For employer’s own contribution to provident fund, the below entry is posted.

Salary a/c. Dr...

To own contribution to PF a/c. Cr...

3. When both the amounts are deposited, the below entry is posted.

Provident fund reduction a/c. Dr...

Own contribution to PF a/c. Dr...

To bank a/c. Cr...

If the amount has not been deposited within the accounting period, it is to be shown on the balance sheet as a current liability.