02-18-2009, 04:51 AM
as far as i know.......in case of annual leaves (paid leaves) which lapse in year 2
......
we create provision for unavailed leaves at year end 20x1......
last drawn per day salary of 20x1 x no of unavailed leaves
Leave exp Dr.
Provision for annual leaves Cr.
now...if in the year 20x2.......an employee opts to encashe the leaves.......what entry will be passed???
Secondly...
when the person is being paid the cash for unavailed leaves in 20x2 for the leaves earned in 20x1....what salary will be used for calculation of payment??
......
we create provision for unavailed leaves at year end 20x1......
last drawn per day salary of 20x1 x no of unavailed leaves
Leave exp Dr.
Provision for annual leaves Cr.
now...if in the year 20x2.......an employee opts to encashe the leaves.......what entry will be passed???
Secondly...
when the person is being paid the cash for unavailed leaves in 20x2 for the leaves earned in 20x1....what salary will be used for calculation of payment??
