ACCOUNTING TRANSACTION

[NARAYAN SAHU]

Dear Sir, I am working in a manufacturing company. I have a small doubt.

One of our employee broke a tool which costs ₹ 2000/-. So management told to deduct that amount from his salary. Please suggest what will be the accounting transaction (Dr. A/c & Cr. A/c).

AI Summary

Guidance on recording salary deduction for tool damage: Debit recovery account, credit employee account. An employee at a manufacturing company accidentally broke a tool valued at 2,000. The management decided to deduct this amount from the employee's salary. The query seeks guidance on the appropriate accounting transaction to record this deduction. The suggested accounting entry is to debit the recovery account and credit the employee account.