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this is an add back , a dis-allowable expense for taxation hence should be to the salary control as non salary cash benefit/expense
wagacira1: Tax is completely irrelevant for Paper F3!
sarveshphrboy:
If it has been paid then Credit cash; Debit Directors remuneration expense
It (as is more likely) it has not yet been paid, then Credit Directors current accounts (which is a current liability); Debit Directors remuneration expense.sir if they say directors bonus transferred to their accounts what journal entries would be required
@sidishah said:
sir if they say directors bonus transferred to their accounts what journal entries would be requiredAs Sir John Moffat said,
Dr Remuneration Expense
Cr CashIf the question specifically says that it was declared earlier and now it has been paid, then the first entry at the time of declaration would be:
Dr Remuneration Expense
Cr Bonus Payable to Directors
Second entry when cash is actually paid would be:
Dr Bonus Payable to Directors
Cr Cash
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