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Hello John,
I wanna ask just a little question. When a Penalty is deducted from the company of its employee when they come late on duty what is the correct account to treat those amounts?
Its actually not an expense either because company has not spend any amount on it but has got the benefit of not paying the employee in full. so i was wondering whats the correct way to treat these kind of think.
In future you must ask in the Ask the Tutor Forum if you want me to answer. This forum is for students to help each other.
There is no entry for the penalty. It simply means that the amount paid to the employee is lower and the amount actually paid will be entered as an expense (which will be lower than it otherwise would have been).
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