diff --git a/erpnext/accounts/doctype/account/chart_of_accounts/verified/ae_uae_chart_template_standard.json b/erpnext/accounts/doctype/account/chart_of_accounts/verified/ae_uae_chart_template_standard.json
index 68ab3fc..9a93423 100644
--- a/erpnext/accounts/doctype/account/chart_of_accounts/verified/ae_uae_chart_template_standard.json
+++ b/erpnext/accounts/doctype/account/chart_of_accounts/verified/ae_uae_chart_template_standard.json
@@ -341,9 +341,7 @@
                         "Post Dated Cheques Paid": {
                             "account_type": "Payable"
                         }, 
-                        "Staff Payable": {
-                            "account_type": "Payable"
-                        }, 
+                        "Staff Payable": {}, 
                         "Suppliers Price Protection": {
                             "account_type": "Payable"
                         }, 
diff --git a/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json b/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json
index c7a8045..b3c7891 100644
--- a/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json
+++ b/erpnext/accounts/doctype/account/chart_of_accounts/verified/in_standard_chart_of_accounts.json
@@ -136,7 +136,8 @@
 			    "Accounts Payable": {
 			        "Creditors": {
 			            "account_type": "Payable"
-			        }
+			        },
+					"Payroll Payable": {}
 			    },
 			    "Stock Liabilities": {
 				    "Stock Received But Not Billed": {
diff --git a/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_default_coa.json b/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_default_coa.json
index b266914..58a89b5 100644
--- a/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_default_coa.json
+++ b/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_default_coa.json
@@ -265,7 +265,8 @@
                 "Accounts Payable": {
                     "Creditors": {
                         "account_type": "Payable"
-                    }
+                    },
+					"Payroll Payable": {}
                 }, 
                 "Duties and Taxes": {
                     "Deferred Tax Liabilities-Current": {}, 
diff --git a/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_fnb_coa.json b/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_fnb_coa.json
index 961912d..15c2468 100644
--- a/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_fnb_coa.json
+++ b/erpnext/accounts/doctype/account/chart_of_accounts/verified/sg_fnb_coa.json
@@ -142,7 +142,8 @@
 				"Accounts Payable": {
 					"Creditors":{
 						"account_type": "Payable"
-					}
+					},
+					"Payroll Payable": {}
 			 	},
 			 	"Duties and Taxes": {
 					"account_type": "Tax",
diff --git a/erpnext/accounts/doctype/account/chart_of_accounts/verified/standard_chart_of_accounts.py b/erpnext/accounts/doctype/account/chart_of_accounts/verified/standard_chart_of_accounts.py
index 5824704..c6495c1 100644
--- a/erpnext/accounts/doctype/account/chart_of_accounts/verified/standard_chart_of_accounts.py
+++ b/erpnext/accounts/doctype/account/chart_of_accounts/verified/standard_chart_of_accounts.py
@@ -137,7 +137,8 @@
 			    _("Accounts Payable"): {
 			        _("Creditors"): {
 			            "account_type": "Payable"
-			        }
+			        },
+			        _("Payroll Payable"): {},
 			    },
 			    _("Stock Liabilities"): {
 				    _("Stock Received But Not Billed"): {
diff --git a/erpnext/hr/doctype/employee_loan/employee_loan.js b/erpnext/hr/doctype/employee_loan/employee_loan.js
index a03dbda..cb9216f 100644
--- a/erpnext/hr/doctype/employee_loan/employee_loan.js
+++ b/erpnext/hr/doctype/employee_loan/employee_loan.js
@@ -12,6 +12,16 @@
 				}
 			};
 		});
+		
+		frm.set_query("interest_income_account", function() {
+			return {
+				"filters": {
+						"company": frm.doc.company,
+						"root_type": "Income",
+						"is_group": 0
+				}
+			};
+		});
 
 		$.each(["payment_account", "employee_loan_account"], function(i, field) {
 			frm.set_query(field, function() {
diff --git a/erpnext/hr/doctype/employee_loan/employee_loan.json b/erpnext/hr/doctype/employee_loan/employee_loan.json
index 22c7dd6..9e884b3 100644
--- a/erpnext/hr/doctype/employee_loan/employee_loan.json
+++ b/erpnext/hr/doctype/employee_loan/employee_loan.json
@@ -670,6 +670,34 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "fieldname": "interest_income_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Interest Income Account", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "section_break_15", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
diff --git a/erpnext/hr/doctype/process_payroll/process_payroll.js b/erpnext/hr/doctype/process_payroll/process_payroll.js
index 128e533..e1bea62 100644
--- a/erpnext/hr/doctype/process_payroll/process_payroll.js
+++ b/erpnext/hr/doctype/process_payroll/process_payroll.js
@@ -20,6 +20,21 @@
 					"company": frm.doc.company
 				}
 			}
+		}),
+		frm.set_query("cost_center", function() {
+			return {
+				filters: {
+					"is_group": 0,
+					company: frm.doc.company
+				}
+			}
+		}),
+		frm.set_query("project", function() {
+			return {
+				filters: {
+					company: frm.doc.company
+				}
+			}
 		})
 	},
 
@@ -63,7 +78,7 @@
 				}
 			})
 		}
-	}
+	},
 })
 
 cur_frm.cscript.display_activity_log = function(msg) {
@@ -108,46 +123,18 @@
 	});
 }
 
-cur_frm.cscript.make_bank_entry = function(doc,cdt,cdn){
+cur_frm.cscript.make_bank_entry = function(doc, cdt, cdn){
     if(doc.company && doc.start_date && doc.end_date){
-		return cur_frm.cscript.reference_entry(doc,cdt,cdn);
+		return frappe.call({
+			doc: cur_frm.doc,
+			method: "make_payment_entry",
+			callback: function(r) {
+				if (r.message)
+					var doc = frappe.model.sync(r.message)[0];
+					frappe.set_route("Form", doc.doctype, doc.name);
+			}
+		});
     } else {
   	  msgprint(__("Company, From Date and To Date is mandatory"));
     }
-}
-
-cur_frm.cscript.reference_entry = function(doc,cdt,cdn){
-	var dialog = new frappe.ui.Dialog({
-		title: __("Bank Transaction Reference"),
-		fields: [
-			{
-				"label": __("Reference Number"),
-				"fieldname": "reference_number",
-				"fieldtype": "Data",
-				"reqd": 1
-			},
-			{
-				"label": __("Reference Date"),
-				"fieldname": "reference_date",
-				"fieldtype": "Date",
-				"reqd": 1,
-				"default": get_today()
-			}
-		]
-	});
-	dialog.set_primary_action(__("Make"), function() {
-		args = dialog.get_values();
-		if(!args) return;
-		dialog.hide();
-		return frappe.call({
-			doc: cur_frm.doc,
-			method: "make_journal_entry",
-			args: {"reference_number": args.reference_number, "reference_date":args.reference_date},
-			callback: function(r) {
-				if (r.message)
-					cur_frm.cscript.display_activity_log(r.message);
-			}
-		});
-	});
-	dialog.show();
 }
\ No newline at end of file
diff --git a/erpnext/hr/doctype/process_payroll/process_payroll.json b/erpnext/hr/doctype/process_payroll/process_payroll.json
index 7d84910..2b847b3 100644
--- a/erpnext/hr/doctype/process_payroll/process_payroll.json
+++ b/erpnext/hr/doctype/process_payroll/process_payroll.json
@@ -20,7 +20,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Select Employees", 
@@ -47,7 +46,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -75,7 +73,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 1, 
    "in_standard_filter": 0, 
    "label": "Company", 
@@ -104,7 +101,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Posting Date", 
@@ -134,7 +130,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Payroll Frequency", 
@@ -163,7 +158,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -190,7 +184,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 1, 
    "in_standard_filter": 0, 
    "label": "Branch", 
@@ -218,7 +211,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Department", 
@@ -246,7 +238,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Designation", 
@@ -274,7 +265,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -301,7 +291,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Salary Slip Based on Timesheet", 
@@ -329,7 +318,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Select Payroll Period", 
@@ -358,7 +346,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Start Date", 
@@ -386,7 +373,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -414,7 +400,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "End Date", 
@@ -437,12 +422,120 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "fieldname": "section_break_16", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Accounts", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "cost_center", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Cost Center", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Cost Center", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 1, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "column_break_18", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "project", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Project", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Project", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "process_payroll", 
    "fieldtype": "Section Break", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Process Payroll", 
@@ -470,7 +563,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -498,7 +590,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Create Salary Slip", 
@@ -525,7 +616,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -553,7 +643,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Submit Salary Slip", 
@@ -580,10 +669,9 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
-   "label": "Account", 
+   "label": "Payment Entry", 
    "length": 0, 
    "no_copy": 0, 
    "permlevel": 0, 
@@ -609,7 +697,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Payment Account", 
@@ -640,7 +727,6 @@
    "hidden": 1, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Make Bank Entry", 
@@ -667,7 +753,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -693,7 +778,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Activity Log", 
@@ -722,7 +806,7 @@
  "issingle": 1, 
  "istable": 0, 
  "max_attachments": 0, 
- "modified": "2016-12-14 01:48:22.326326", 
+ "modified": "2017-02-08 02:34:59.130475", 
  "modified_by": "Administrator", 
  "module": "HR", 
  "name": "Process Payroll", 
@@ -738,7 +822,6 @@
    "export": 0, 
    "if_owner": 0, 
    "import": 0, 
-   "is_custom": 0, 
    "permlevel": 0, 
    "print": 0, 
    "read": 1, 
@@ -755,5 +838,6 @@
  "read_only_onload": 0, 
  "sort_field": "modified", 
  "sort_order": "DESC", 
+ "track_changes": 0, 
  "track_seen": 0
 }
\ No newline at end of file
diff --git a/erpnext/hr/doctype/process_payroll/process_payroll.py b/erpnext/hr/doctype/process_payroll/process_payroll.py
index 7bfde1c..561ddfc 100644
--- a/erpnext/hr/doctype/process_payroll/process_payroll.py
+++ b/erpnext/hr/doctype/process_payroll/process_payroll.py
@@ -140,7 +140,7 @@
 			Submit all salary slips based on selected criteria
 		"""
 		self.check_permission('write')
-
+		jv_name = ""
 		ss_list = self.get_sal_slip_list(ss_status=0)
 		submitted_ss = []
 		not_submitted_ss = []
@@ -158,10 +158,12 @@
 					submitted_ss.append(ss_dict)
 				except frappe.ValidationError:
 					not_submitted_ss.append(ss_dict)
+		if submitted_ss:
+			jv_name = self.make_accural_jv_entry()		
 
-		return self.create_submit_log(submitted_ss, not_submitted_ss)
+		return self.create_submit_log(submitted_ss, not_submitted_ss, jv_name)
 
-	def create_submit_log(self, submitted_ss, not_submitted_ss):
+	def create_submit_log(self, submitted_ss, not_submitted_ss, jv_name):
 		log = ''
 		if not submitted_ss and not not_submitted_ss:
 			log = "No salary slip found to submit for the above selected criteria"
@@ -171,9 +173,12 @@
 					dict(ss_list=submitted_ss,
 						keys=sorted(submitted_ss[0].keys()),
 						title=_('Submitted Salary Slips')))
+			if jv_name:
+				log += "<b>" + _("Accural Journal Entry Submitted") + "</b>\
+					%s" % '<br>''<a href="#Form/Journal Entry/{0}">{0}</a>'.format(jv_name)			
 
 		if not_submitted_ss:
-			log += frappe.render_template(self.get_log_template(),
+			log += frappe.render_template("templates/includes/salary_slip_log.html",
 					dict(ss_list=not_submitted_ss,
 						keys=sorted(not_submitted_ss[0].keys()),
 						title=_('Not Submitted Salary Slips')))
@@ -188,17 +193,23 @@
 		return ['<a href="#Form/Salary Slip/{0}">{0}</a>'.format(salary_slip)]
 
 
-	def get_total_salary(self):
+	def get_total_salary_and_loan_amounts(self):
 		"""
-			Get total salary amount from submitted salary slip based on selected criteria
+			Get total loan principal, loan interest and salary amount from submitted salary slip based on selected criteria
 		"""
 		cond = self.get_filter_condition()
-		tot = frappe.db.sql("""
-			select sum(rounded_total) from `tabSalary Slip` t1
+		totals = frappe.db.sql("""
+			select sum(principal_amount) as total_principal_amount, sum(interest_amount) as total_interest_amount, 
+			sum(total_loan_repayment) as total_loan_repayment, sum(rounded_total) as rounded_total from `tabSalary Slip` t1
 			where t1.docstatus = 1 and start_date >= %s and end_date <= %s %s
-		""" % ('%s', '%s', cond), (self.start_date, self.end_date))
-
-		return flt(tot[0][0])
+			""" % ('%s', '%s', cond), (self.start_date, self.end_date), as_dict=True)
+		return totals[0]
+	
+	def get_loan_accounts(self):
+		loan_accounts = frappe.get_all("Employee Loan", fields=["employee_loan_account", "interest_income_account"], 
+						filters = {"company": self.company, "docstatus":1})
+		if loan_accounts:
+			return loan_accounts[0]
 
 	def get_salary_component_account(self, salary_component):
 		account = frappe.db.get_value("Salary Component Account",
@@ -233,18 +244,31 @@
 			account = self.get_salary_component_account(s)
 			account_dict[account] = account_dict.get(account, 0) + a
 		return account_dict
+	
+	def get_default_payroll_payable_account(self):
+		payroll_payable_account = frappe.db.get_value("Company",
+			{"company_name": self.company}, "default_payroll_payable_account")
+
+		if not payroll_payable_account:
+			frappe.throw(_("Please set Default Payroll Payable Account in Company {0}")
+				.format(self.company))
+
+		return payroll_payable_account	
 
 
-	def make_journal_entry(self, reference_number = None, reference_date = None):
+	def make_accural_jv_entry(self):
 		self.check_permission('write')
 		earnings = self.get_salary_component_total(component_type = "earnings") or {}
 		deductions = self.get_salary_component_total(component_type = "deductions") or {}
+		default_payroll_payable_account = self.get_default_payroll_payable_account()
+		loan_amounts = self.get_total_salary_and_loan_amounts()
+		loan_accounts = self.get_loan_accounts()
 		jv_name = ""
 
 		if earnings or deductions:
 			journal_entry = frappe.new_doc('Journal Entry')
-			journal_entry.voucher_type = 'Bank Entry'
-			journal_entry.user_remark = _('Payment of salary from {0} to {1}').format(self.start_date,
+			journal_entry.voucher_type = 'Journal Entry'
+			journal_entry.user_remark = _('Accural Journal Entry for salaries from {0} to {1}').format(self.start_date,
 				self.end_date)
 			journal_entry.company = self.company
 			journal_entry.posting_date = nowdate()
@@ -255,22 +279,36 @@
 				adjustment_amt = adjustment_amt+amt
 				account_amt_list.append({
 						"account": acc,
-						"debit_in_account_currency": amt
+						"debit_in_account_currency": amt,
+						"cost_center": self.cost_center,
+						"project": self.project
 					})
 			for acc, amt in deductions.items():
 				adjustment_amt = adjustment_amt-amt
 				account_amt_list.append({
 						"account": acc,
-						"credit_in_account_currency": amt
+						"credit_in_account_currency": amt,
+						"cost_center": self.cost_center,
+						"project": self.project
 					})
+			#employee loan
 			account_amt_list.append({
-					"account": self.payment_account,
+					"account": loan_accounts.employee_loan_account,
+					"credit_in_account_currency": loan_amounts.total_principal_amount
+				})
+			account_amt_list.append({
+					"account": loan_accounts.interest_income_account,
+					"credit_in_account_currency": loan_amounts.total_interest_amount,
+					"cost_center": self.cost_center,
+					"project": self.project
+				})	
+			adjustment_amt = adjustment_amt-(loan_amounts.total_loan_repayment)
+			
+			account_amt_list.append({
+					"account": default_payroll_payable_account,
 					"credit_in_account_currency": adjustment_amt
 				})
 			journal_entry.set("accounts", account_amt_list)
-			journal_entry.cheque_no = reference_number
-			journal_entry.cheque_date = reference_date
-			journal_entry.multi_currency = 1
 			journal_entry.save()
 			try:
 				journal_entry.submit()
@@ -278,15 +316,33 @@
 				self.update_salary_slip_status(jv_name = jv_name)
 			except Exception, e:
 				frappe.msgprint(e)
-		return self.create_jv_log(jv_name)
+		return jv_name
 
+	def make_payment_entry(self):
+		self.check_permission('write')
+		total_salary_amount = self.get_total_salary_and_loan_amounts()
+		default_payroll_payable_account = self.get_default_payroll_payable_account()
 
-	def create_jv_log(self, jv_name):
-		log = "<p>" + _("No submitted Salary Slip found") + "</p>"
-		if jv_name:
-			log = "<b>" + _("Journal Entry Submitted") + "</b>\
-				%s" % '<br>''<a href="#Form/Journal Entry/{0}">{0}</a>'.format(jv_name)
-		return log
+		if total_salary_amount.rounded_total:
+			journal_entry = frappe.new_doc('Journal Entry')
+			journal_entry.voucher_type = 'Bank Entry'
+			journal_entry.user_remark = _('Payment of salary from {0} to {1}').format(self.start_date,
+				self.end_date)
+			journal_entry.company = self.company
+			journal_entry.posting_date = nowdate()
+
+			account_amt_list = []
+		
+			account_amt_list.append({
+					"account": self.payment_account,
+					"credit_in_account_currency": total_salary_amount.rounded_total
+				})
+			account_amt_list.append({
+					"account": default_payroll_payable_account,
+					"debit_in_account_currency": total_salary_amount.rounded_total
+				})	
+			journal_entry.set("accounts", account_amt_list)
+		return journal_entry.as_dict()
 
 	def update_salary_slip_status(self, jv_name = None):
 		ss_list = self.get_sal_slip_list(ss_status=1)
diff --git a/erpnext/hr/doctype/process_payroll/test_process_payroll.py b/erpnext/hr/doctype/process_payroll/test_process_payroll.py
index 2eb1c6b..6347a2a 100644
--- a/erpnext/hr/doctype/process_payroll/test_process_payroll.py
+++ b/erpnext/hr/doctype/process_payroll/test_process_payroll.py
@@ -29,7 +29,7 @@
 			process_payroll.create_salary_slips()
 			process_payroll.submit_salary_slips()
 			if process_payroll.get_sal_slip_list(ss_status = 1):
-				r = process_payroll.make_journal_entry(reference_number=random_string(10),reference_date=nowdate())
+				r = process_payroll.make_payment_entry()
 	
 
 def get_salary_component_account(sal_comp):
diff --git a/erpnext/hr/doctype/salary_component/salary_component.js b/erpnext/hr/doctype/salary_component/salary_component.js
index 3a2492c..86203ab 100644
--- a/erpnext/hr/doctype/salary_component/salary_component.js
+++ b/erpnext/hr/doctype/salary_component/salary_component.js
@@ -5,13 +5,14 @@
 	setup: function(frm) {
 		frm.set_query("default_account", "accounts", function(doc, cdt, cdn) {
 			var d = locals[cdt][cdn];
+			var root_types = ["Expense", "Liability"];
 			return {
 				filters: {
-					"root_type": "Expense",
+					"root_type": ["in", root_types],
 					"is_group": 0,
 					"company": d.company
 				}
 			}
 		})
 	}
-});
+});
\ No newline at end of file
diff --git a/erpnext/hr/doctype/salary_component/salary_component.py b/erpnext/hr/doctype/salary_component/salary_component.py
index 8af7311..c02d952 100644
--- a/erpnext/hr/doctype/salary_component/salary_component.py
+++ b/erpnext/hr/doctype/salary_component/salary_component.py
@@ -21,4 +21,4 @@
 			frappe.throw(_("Abbreviation cannot have more than 5 characters"))
 
 		if frappe.db.sql("select salary_component_abbr from `tabSalary Component` where name!=%s and salary_component_abbr=%s", (self.name, self.salary_component_abbr)):
-			frappe.throw(_("Abbreviation already used for another salary component"))
\ No newline at end of file
+			frappe.throw(_("Abbreviation {0} already used for another salary component").format(self.salary_component_abbr))
\ No newline at end of file
diff --git a/erpnext/hr/doctype/salary_slip/salary_slip.js b/erpnext/hr/doctype/salary_slip/salary_slip.js
index 0262259..afff67b 100644
--- a/erpnext/hr/doctype/salary_slip/salary_slip.js
+++ b/erpnext/hr/doctype/salary_slip/salary_slip.js
@@ -38,6 +38,7 @@
 
 	refresh: function(frm) {
 		frm.trigger("toggle_fields")
+		frm.trigger("toggle_reqd_fields")
 		salary_detail_fields = ['formula', 'abbr']
 		cur_frm.fields_dict['earnings'].grid.set_column_disp(salary_detail_fields,false);
 		cur_frm.fields_dict['deductions'].grid.set_column_disp(salary_detail_fields,false);
@@ -58,9 +59,9 @@
 		frm.toggle_display(['payment_days', 'total_working_days', 'leave_without_pay'],
 			frm.doc.payroll_frequency!="");
 	}
+	
 })
 
-
 // Get leave details
 //---------------------------------------------------------------------
 cur_frm.cscript.start_date = function(doc, dt, dn){
@@ -130,7 +131,7 @@
 		total_earn += flt(tbl[i].amount);
 		
 	}
-	doc.gross_pay = total_earn + flt(doc.arrear_amount) + flt(doc.leave_encashment_amount);
+	doc.gross_pay = total_earn;
 	refresh_many(['amount','gross_pay']);
 }
 
@@ -161,17 +162,6 @@
 	refresh_many(['net_pay', 'rounded_total']);
 }
 
-// trigger on arrear
-// ------------------------------------------------------------------------
-cur_frm.cscript.arrear_amount = function(doc,dt,dn){
-	calculate_earning_total(doc, dt, dn);
-	calculate_net_pay(doc, dt, dn);
-}
-
-// trigger on encashed amount
-// ------------------------------------------------------------------------
-cur_frm.cscript.leave_encashment_amount = cur_frm.cscript.arrear_amount;
-
 // validate
 // ------------------------------------------------------------------------
 cur_frm.cscript.validate = function(doc, dt, dn) {
diff --git a/erpnext/hr/doctype/salary_slip/salary_slip.json b/erpnext/hr/doctype/salary_slip/salary_slip.json
index 89dc628..e076c0f 100644
--- a/erpnext/hr/doctype/salary_slip/salary_slip.json
+++ b/erpnext/hr/doctype/salary_slip/salary_slip.json
@@ -291,7 +291,7 @@
    "collapsible": 0, 
    "columns": 0, 
    "fieldname": "journal_entry", 
-   "fieldtype": "Data", 
+   "fieldtype": "Link", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
@@ -302,6 +302,7 @@
    "label": "Journal Entry", 
    "length": 0, 
    "no_copy": 0, 
+   "options": "Journal Entry", 
    "permlevel": 0, 
    "precision": "", 
    "print_hide": 0, 
@@ -1158,68 +1159,6 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "fieldname": "arrear_amount", 
-   "fieldtype": "Currency", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Arrear Amount", 
-   "length": 0, 
-   "no_copy": 0, 
-   "oldfieldname": "arrear_amount", 
-   "oldfieldtype": "Currency", 
-   "options": "Company:company:default_currency", 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
-   "fieldname": "leave_encashment_amount", 
-   "fieldtype": "Currency", 
-   "hidden": 0, 
-   "ignore_user_permissions": 0, 
-   "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
-   "in_list_view": 0, 
-   "in_standard_filter": 0, 
-   "label": "Leave Encashment Amount", 
-   "length": 0, 
-   "no_copy": 0, 
-   "oldfieldname": "encashment_amount", 
-   "oldfieldtype": "Currency", 
-   "options": "Company:company:default_currency", 
-   "permlevel": 0, 
-   "print_hide": 0, 
-   "print_hide_if_no_value": 0, 
-   "read_only": 0, 
-   "remember_last_selected_value": 0, 
-   "report_hide": 0, 
-   "reqd": 0, 
-   "search_index": 0, 
-   "set_only_once": 0, 
-   "unique": 0
-  }, 
-  {
-   "allow_on_submit": 0, 
-   "bold": 0, 
-   "collapsible": 0, 
-   "columns": 0, 
    "fieldname": "gross_pay", 
    "fieldtype": "Currency", 
    "hidden": 0, 
@@ -1256,8 +1195,6 @@
    "hidden": 0, 
    "ignore_user_permissions": 0, 
    "ignore_xss_filter": 0, 
-   "in_filter": 0, 
-   "in_global_search": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "length": 0, 
@@ -1309,7 +1246,35 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "depends_on": "total_loan_repayment", 
    "fieldname": "loan_repayment", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Loan repayment", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "principal_amount", 
    "fieldtype": "Currency", 
    "hidden": 0, 
    "ignore_user_permissions": 0, 
@@ -1318,9 +1283,10 @@
    "in_global_search": 0, 
    "in_list_view": 0, 
    "in_standard_filter": 0, 
-   "label": "Loan Repayment", 
+   "label": "Principal Amount", 
    "length": 0, 
    "no_copy": 0, 
+   "options": "Company:company:default_currency", 
    "permlevel": 0, 
    "precision": "", 
    "print_hide": 0, 
@@ -1338,7 +1304,122 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
-   "description": "Gross Pay + Arrear Amount + Encashment Amount - Total Deduction - Loan Repayment", 
+   "fieldname": "interest_amount", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Interest Amount", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Company:company:default_currency", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "column_break_48", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "total_loan_repayment", 
+   "fieldtype": "Currency", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Total Loan Repayment", 
+   "length": 0, 
+   "no_copy": 0, 
+   "options": "Company:company:default_currency", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 1, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "net_pay_info", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_filter": 0, 
+   "in_global_search": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "net pay info", 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "description": "Gross Pay - Total Deduction - Loan Repayment", 
    "fieldname": "net_pay", 
    "fieldtype": "Currency", 
    "hidden": 0, 
@@ -1367,6 +1448,32 @@
   }, 
   {
    "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
+   "fieldname": "column_break_53", 
+   "fieldtype": "Column Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
    "bold": 1, 
    "collapsible": 0, 
    "columns": 0, 
@@ -1399,6 +1506,32 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "fieldname": "section_break_55", 
+   "fieldtype": "Section Break", 
+   "hidden": 0, 
+   "ignore_user_permissions": 0, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "length": 0, 
+   "no_copy": 0, 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "description": "Net Pay (in words) will be visible once you save the Salary Slip.", 
    "fieldname": "total_in_words", 
    "fieldtype": "Data", 
diff --git a/erpnext/hr/doctype/salary_slip/salary_slip.py b/erpnext/hr/doctype/salary_slip/salary_slip.py
index 9d57a5d..55314ac 100644
--- a/erpnext/hr/doctype/salary_slip/salary_slip.py
+++ b/erpnext/hr/doctype/salary_slip/salary_slip.py
@@ -324,25 +324,28 @@
 
 		disable_rounded_total = cint(frappe.db.get_value("Global Defaults", None, "disable_rounded_total"))
 
-		self.gross_pay = flt(self.arrear_amount) + flt(self.leave_encashment_amount)
 		self.total_deduction = 0
+		self.gross_pay = 0
 
 		self.sum_components('earnings', 'gross_pay')
 		self.sum_components('deductions', 'total_deduction')
 		
 		self.set_loan_repayment()
 
-		self.net_pay = flt(self.gross_pay) - (flt(self.total_deduction) + flt(self.loan_repayment))
+		self.net_pay = flt(self.gross_pay) - (flt(self.total_deduction) + flt(self.total_loan_repayment))
 		self.rounded_total = rounded(self.net_pay,
 			self.precision("net_pay") if disable_rounded_total else 0)
 
 	def set_loan_repayment(self):
-		employee_loan = frappe.db.sql("""select sum(total_payment) as loan_repayment from `tabRepayment Schedule`
+		employee_loan = frappe.db.sql("""select sum(principal_amount) as principal_amount, sum(interest_amount) as interest_amount, 
+						sum(total_payment) as total_loan_repayment from `tabRepayment Schedule`
 						where payment_date between %s and %s and parent in (select name from `tabEmployee Loan`
 						where employee = %s and repay_from_salary = 1 and docstatus = 1)""",
-						(self.start_date, self.end_date, self.employee), as_dict=True)
+						(self.start_date, self.end_date, self.employee), as_dict=True)				
 		if employee_loan:
-			self.loan_repayment = employee_loan[0].loan_repayment
+			self.principal_amount = employee_loan[0].principal_amount
+			self.interest_amount = employee_loan[0].interest_amount
+			self.total_loan_repayment = employee_loan[0].total_loan_repayment
 
 	def on_submit(self):
 		if self.net_pay < 0:
diff --git a/erpnext/hr/doctype/salary_slip/test_salary_slip.py b/erpnext/hr/doctype/salary_slip/test_salary_slip.py
index 9999f1e..cf76ee7 100644
--- a/erpnext/hr/doctype/salary_slip/test_salary_slip.py
+++ b/erpnext/hr/doctype/salary_slip/test_salary_slip.py
@@ -14,7 +14,7 @@
 
 class TestSalarySlip(unittest.TestCase):
 	def setUp(self):
-		make_earning_salary_component(["Basic Salary", "Allowance", "HRA"])
+		make_earning_salary_component(["Basic Salary", "Special Allowance", "HRA"])
 		make_deduction_salary_component(["Professional Tax", "TDS"])
 
 		for dt in ["Leave Application", "Leave Allocation", "Salary Slip"]:
@@ -143,8 +143,8 @@
 		ss = frappe.get_doc("Salary Slip",
 			self.make_employee_salary_slip("test_employee@salary.com", "Monthly"))
 		ss.submit()
-		self.assertEquals(ss.loan_repayment, 582)
-		self.assertEquals(ss.net_pay, (flt(ss.gross_pay) - (flt(ss.total_deduction) + flt(ss.loan_repayment))))
+		self.assertEquals(ss.total_loan_repayment, 582)
+		self.assertEquals(ss.net_pay, (flt(ss.gross_pay) - (flt(ss.total_deduction) + flt(ss.total_loan_repayment))))
 
 	def test_payroll_frequency(self):
 		fiscal_year = get_fiscal_year(nowdate(), company="_Test Company")[0]
@@ -322,8 +322,8 @@
 					"idx": 3
 				},
 				{
-					"salary_component": 'Allowance',
-					"abbr":'A',
+					"salary_component": 'Special Allowance',
+					"abbr":'SA',
 					"condition": 'H < 10000',
 					"formula": 'BS*.5',
 					"idx": 4
diff --git a/erpnext/hr/doctype/salary_structure/test_salary_structure.py b/erpnext/hr/doctype/salary_structure/test_salary_structure.py
index 36e50d3..665f8a8 100644
--- a/erpnext/hr/doctype/salary_structure/test_salary_structure.py
+++ b/erpnext/hr/doctype/salary_structure/test_salary_structure.py
@@ -17,7 +17,7 @@
 	def setUp(self):
 		self.make_holiday_list()
 		frappe.db.set_value("Company", erpnext.get_default_company(), "default_holiday_list", "Salary Structure Test Holiday List")
-		make_earning_salary_component(["Basic Salary", "Allowance", "HRA"])
+		make_earning_salary_component(["Basic Salary", "Special Allowance", "HRA"])
 		make_deduction_salary_component(["Professional Tax", "TDS"])
 		make_employee("test_employee@salary.com")
 		make_employee("test_employee_2@salary.com")
@@ -139,8 +139,8 @@
 					"idx": 3
 				},
 				{
-					"salary_component": 'Allowance',
-					"abbr":'A',
+					"salary_component": 'Special Allowance',
+					"abbr":'SA',
 					"condition": 'H < 10000',
 					"formula": 'BS*.5',
 					"idx": 4
diff --git a/erpnext/hr/print_format/salary_slip_standard/salary_slip_standard.json b/erpnext/hr/print_format/salary_slip_standard/salary_slip_standard.json
index 0c38d45..cb4003a 100644
--- a/erpnext/hr/print_format/salary_slip_standard/salary_slip_standard.json
+++ b/erpnext/hr/print_format/salary_slip_standard/salary_slip_standard.json
@@ -6,7 +6,7 @@
  "docstatus": 0, 
  "doctype": "Print Format", 
  "font": "Default", 
- "format_data": "[{\"fieldname\": \"print_heading_template\", \"fieldtype\": \"HTML\", \"options\": \"   <h3 style=\\\"text-align: right;\\\"><span style=\\\"line-height: 1.42857;\\\">{{doc.name}}</span></h3>\\n<div>\\n    <hr style=\\\"text-align: center;\\\">\\n</div>   \"}, {\"fieldtype\": \"Section Break\"}, {\"fieldtype\": \"Column Break\"}, {\"print_hide\": 0, \"fieldname\": \"employee\"}, {\"print_hide\": 0, \"fieldname\": \"company\"}, {\"print_hide\": 0, \"fieldname\": \"employee_name\"}, {\"print_hide\": 0, \"fieldname\": \"department\"}, {\"print_hide\": 0, \"fieldname\": \"designation\"}, {\"print_hide\": 0, \"fieldname\": \"branch\"}, {\"fieldtype\": \"Column Break\"}, {\"print_hide\": 0, \"fieldname\": \"start_date\"}, {\"print_hide\": 0, \"fieldname\": \"end_date\"}, {\"print_hide\": 0, \"fieldname\": \"total_working_days\"}, {\"print_hide\": 0, \"fieldname\": \"leave_without_pay\"}, {\"print_hide\": 0, \"fieldname\": \"payment_days\"}, {\"fieldtype\": \"Section Break\"}, {\"fieldtype\": \"Column Break\"}, {\"visible_columns\": [{\"print_hide\": 0, \"fieldname\": \"salary_component\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"amount\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"depends_on_lwp\", \"print_width\": \"\"}], \"print_hide\": 0, \"fieldname\": \"earnings\"}, {\"fieldtype\": \"Column Break\"}, {\"visible_columns\": [{\"print_hide\": 0, \"fieldname\": \"salary_component\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"amount\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"depends_on_lwp\", \"print_width\": \"\"}], \"print_hide\": 0, \"fieldname\": \"deductions\"}, {\"fieldtype\": \"Section Break\"}, {\"fieldtype\": \"Column Break\"}, {\"fieldtype\": \"Column Break\"}, {\"print_hide\": 0, \"fieldname\": \"arrear_amount\"}, {\"print_hide\": 0, \"fieldname\": \"leave_encashment_amount\"}, {\"print_hide\": 0, \"fieldname\": \"gross_pay\"}, {\"print_hide\": 0, \"fieldname\": \"total_deduction\"}, {\"print_hide\": 0, \"fieldname\": \"net_pay\"}, {\"print_hide\": 0, \"fieldname\": \"rounded_total\"}, {\"print_hide\": 0, \"fieldname\": \"total_in_words\"}]", 
+ "format_data": "[{\"fieldname\": \"print_heading_template\", \"fieldtype\": \"HTML\", \"options\": \"   <h3 style=\\\"text-align: right;\\\"><span style=\\\"line-height: 1.42857;\\\">{{doc.name}}</span></h3>\\n<div>\\n    <hr style=\\\"text-align: center;\\\">\\n</div>   \"}, {\"fieldtype\": \"Section Break\"}, {\"fieldtype\": \"Column Break\"}, {\"print_hide\": 0, \"fieldname\": \"employee\"}, {\"print_hide\": 0, \"fieldname\": \"company\"}, {\"print_hide\": 0, \"fieldname\": \"employee_name\"}, {\"print_hide\": 0, \"fieldname\": \"department\"}, {\"print_hide\": 0, \"fieldname\": \"designation\"}, {\"print_hide\": 0, \"fieldname\": \"branch\"}, {\"fieldtype\": \"Column Break\"}, {\"print_hide\": 0, \"fieldname\": \"start_date\"}, {\"print_hide\": 0, \"fieldname\": \"end_date\"}, {\"print_hide\": 0, \"fieldname\": \"total_working_days\"}, {\"print_hide\": 0, \"fieldname\": \"leave_without_pay\"}, {\"print_hide\": 0, \"fieldname\": \"payment_days\"}, {\"fieldtype\": \"Section Break\"}, {\"fieldtype\": \"Column Break\"}, {\"visible_columns\": [{\"print_hide\": 0, \"fieldname\": \"salary_component\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"amount\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"depends_on_lwp\", \"print_width\": \"\"}], \"print_hide\": 0, \"fieldname\": \"earnings\"}, {\"fieldtype\": \"Column Break\"}, {\"visible_columns\": [{\"print_hide\": 0, \"fieldname\": \"salary_component\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"amount\", \"print_width\": \"\"}, {\"print_hide\": 0, \"fieldname\": \"depends_on_lwp\", \"print_width\": \"\"}], \"print_hide\": 0, \"fieldname\": \"deductions\"}, {\"fieldtype\": \"Section Break\"}, {\"fieldtype\": \"Column Break\"}, {\"fieldtype\": \"Column Break\"}, {\"print_hide\": 0, \"fieldname\": \"gross_pay\"}, {\"print_hide\": 0, \"fieldname\": \"total_deduction\"}, {\"print_hide\": 0, \"fieldname\": \"net_pay\"}, {\"print_hide\": 0, \"fieldname\": \"rounded_total\"}, {\"print_hide\": 0, \"fieldname\": \"total_in_words\"}]", 
  "idx": 0, 
  "modified": "2016-08-22 00:21:42.600548", 
  "modified_by": "Administrator", 
diff --git a/erpnext/hr/report/salary_register/salary_register.py b/erpnext/hr/report/salary_register/salary_register.py
index 1e36b92..88f6f47 100644
--- a/erpnext/hr/report/salary_register/salary_register.py
+++ b/erpnext/hr/report/salary_register/salary_register.py
@@ -22,7 +22,7 @@
 		for e in earning_types:
 			row.append(ss_earning_map.get(ss.name, {}).get(e))
 
-		row += [ss.arrear_amount, ss.leave_encashment_amount, ss.gross_pay]
+		row += [ss.gross_pay]
 
 		for d in ded_types:
 			row.append(ss_ded_map.get(ss.name, {}).get(d))
@@ -50,8 +50,7 @@
 		salary_components[_(component.type)].append(component.salary_component)
 
 	columns = columns + [(e + ":Currency:120") for e in salary_components[_("Earning")]] + \
-		[ _("Arrear Amount") + ":Currency:120", _("Leave Encashment Amount") + ":Currency:150",
-		_("Gross Pay") + ":Currency:120"] + [(d + ":Currency:120") for d in salary_components[_("Deduction")]] + \
+		[_("Gross Pay") + ":Currency:120"] + [(d + ":Currency:120") for d in salary_components[_("Deduction")]] + \
 		[_("Total Deduction") + ":Currency:120", _("Net Pay") + ":Currency:120"]
 
 	return columns, salary_components[_("Earning")], salary_components[_("Deduction")]
diff --git a/erpnext/patches.txt b/erpnext/patches.txt
index d4ba119..9d458c9 100644
--- a/erpnext/patches.txt
+++ b/erpnext/patches.txt
@@ -372,3 +372,4 @@
 erpnext.patches.v7_2.rename_evaluation_criteria
 erpnext.patches.v7_2.update_party_type
 erpnext.patches.v7_2.empty_supplied_items_for_non_subcontracted
+erpnext.patches.v7_2.arrear_leave_encashment_as_salary_component
diff --git a/erpnext/patches/v7_2/arrear_leave_encashment_as_salary_component.py b/erpnext/patches/v7_2/arrear_leave_encashment_as_salary_component.py
new file mode 100644
index 0000000..0e5dab3
--- /dev/null
+++ b/erpnext/patches/v7_2/arrear_leave_encashment_as_salary_component.py
@@ -0,0 +1,32 @@
+import frappe
+
+def execute():
+	frappe.reload_doctype('Salary Slip', 'Salary Component')
+	salary_components = ['Arrear', 'Leave Encashment']
+	for salary_component in salary_components:
+		if not frappe.db.exists('Salary Component', salary_component):
+			sal_comp = frappe.get_doc({
+				"doctype": "Salary Component",
+				"salary_component": salary_component,
+				"type": "Earning"
+			}).insert()
+
+	salary_slips = frappe.db.sql("""select name, arrear_amount, leave_encashment_amount from `tabSalary Slip`
+					where docstatus !=2 and (arrear_amount > 0 or leave_encashment_amount > 0)""", as_dict=True)
+
+	for salary_slip in salary_slips:
+		doc = frappe.get_doc('Salary Slip', salary_slip.name)
+
+		if salary_slip.get("arrear_amount") > 0:
+			r = doc.append('earnings', {
+				'salary_component': 'Arrear',
+				'amount': salary_slip.arrear_amount
+			})
+			r.db_update()
+
+		if salary_slip.get("leave_encashment_amount") > 0:
+			r = doc.append('earnings', {
+				'salary_component': 'Leave Encashment',
+				'amount': salary_slip.leave_encashment_amount
+			})
+			r.db_update()
\ No newline at end of file
diff --git a/erpnext/setup/doctype/company/company.js b/erpnext/setup/doctype/company/company.js
index 5dd8ceb..0d8b41f 100644
--- a/erpnext/setup/doctype/company/company.js
+++ b/erpnext/setup/doctype/company/company.js
@@ -5,17 +5,6 @@
 
 frappe.ui.form.on("Company", {
 	setup: function(frm) {
-		frm.fields_dict['default_payable_account'].get_query = function() {
-			return{
-				filters: {
-					"root_type": "Liability",
-					"account_type": "Payable"
-				}
-			}
-		}
-	},
-
-	onload: function(frm) {
 		erpnext.company.setup_queries(frm);
 	},
 
@@ -146,6 +135,7 @@
 		["default_payable_account", {"account_type": "Payable"}],
 		["default_expense_account", {"root_type": "Expense"}],
 		["default_income_account", {"root_type": "Income"}],
+		["default_payroll_payable_account", {"root_type": "Liability"}],
 		["round_off_account", {"root_type": "Expense"}],
 		["write_off_account", {"root_type": "Expense"}],
 		["exchange_gain_loss_account", {"root_type": "Expense"}],
diff --git a/erpnext/setup/doctype/company/company.json b/erpnext/setup/doctype/company/company.json
index 1e988aa..46acbc1 100644
--- a/erpnext/setup/doctype/company/company.json
+++ b/erpnext/setup/doctype/company/company.json
@@ -821,6 +821,35 @@
    "bold": 0, 
    "collapsible": 0, 
    "columns": 0, 
+   "depends_on": "eval:!doc.__islocal", 
+   "fieldname": "default_payroll_payable_account", 
+   "fieldtype": "Link", 
+   "hidden": 0, 
+   "ignore_user_permissions": 1, 
+   "ignore_xss_filter": 0, 
+   "in_list_view": 0, 
+   "in_standard_filter": 0, 
+   "label": "Default Payroll Payable Account", 
+   "length": 0, 
+   "no_copy": 1, 
+   "options": "Account", 
+   "permlevel": 0, 
+   "precision": "", 
+   "print_hide": 0, 
+   "print_hide_if_no_value": 0, 
+   "read_only": 0, 
+   "remember_last_selected_value": 0, 
+   "report_hide": 0, 
+   "reqd": 0, 
+   "search_index": 0, 
+   "set_only_once": 0, 
+   "unique": 0
+  }, 
+  {
+   "allow_on_submit": 0, 
+   "bold": 0, 
+   "collapsible": 0, 
+   "columns": 0, 
    "fieldname": "round_off_cost_center", 
    "fieldtype": "Link", 
    "hidden": 0, 
@@ -976,6 +1005,7 @@
    "ignore_xss_filter": 0, 
    "in_filter": 0, 
    "in_global_search": 0, 
+
    "in_list_view": 0, 
    "in_standard_filter": 0, 
    "label": "Credit Days Based On", 
diff --git a/erpnext/setup/doctype/company/company.py b/erpnext/setup/doctype/company/company.py
index 93f02f8..dd7bca9 100644
--- a/erpnext/setup/doctype/company/company.py
+++ b/erpnext/setup/doctype/company/company.py
@@ -50,7 +50,7 @@
 	def validate_default_accounts(self):
 		for field in ["default_bank_account", "default_cash_account", "default_receivable_account", "default_payable_account",
 			"default_expense_account", "default_income_account", "stock_received_but_not_billed",
-			"stock_adjustment_account", "expenses_included_in_valuation"]:
+			"stock_adjustment_account", "expenses_included_in_valuation", "default_payroll_payable_account"]:
 				if self.get(field):
 					for_company = frappe.db.get_value("Account", self.get(field), "company")
 					if for_company != self.name:
diff --git a/erpnext/setup/doctype/company/fixtures/india/__init__.py b/erpnext/setup/doctype/company/fixtures/india/__init__.py
index 0f4bd4f..2cf43c9 100644
--- a/erpnext/setup/doctype/company/fixtures/india/__init__.py
+++ b/erpnext/setup/doctype/company/fixtures/india/__init__.py
@@ -10,7 +10,9 @@
 		{'doctype': 'Salary Component', 'salary_component': 'Professional Tax', 'description': 'Professional Tax', 'type': 'Deduction'},
 		{'doctype': 'Salary Component', 'salary_component': 'Provident Fund', 'description': 'Provident fund', 'type': 'Deduction'},
 		{'doctype': 'Salary Component', 'salary_component': 'House Rent Allowance', 'description': 'House Rent Allowance', 'type': 'Earning'},
-		{'doctype': 'Salary Component', 'salary_component': 'Basic', 'description': 'Basic', 'type': 'Earning'}
+		{'doctype': 'Salary Component', 'salary_component': 'Basic', 'description': 'Basic', 'type': 'Earning'},
+		{'doctype': 'Salary Component', 'salary_component': 'Arrear', 'description': 'Arrear', 'type': 'Earning'},
+		{'doctype': 'Salary Component', 'salary_component': 'Leave Encashment', 'description': 'Leave Encashment', 'type': 'Earning'}
 	]
 
 	for d in docs:
diff --git a/erpnext/setup/setup_wizard/install_fixtures.py b/erpnext/setup/setup_wizard/install_fixtures.py
index 5e08203..e6b4208 100644
--- a/erpnext/setup/setup_wizard/install_fixtures.py
+++ b/erpnext/setup/setup_wizard/install_fixtures.py
@@ -33,6 +33,9 @@
 		# salary component
 		{'doctype': 'Salary Component', 'salary_component': _('Income Tax'), 'description': _('Income Tax'), 'type': 'Deduction'},
 		{'doctype': 'Salary Component', 'salary_component': _('Basic'), 'description': _('Basic'), 'type': 'Earning'},
+		{'doctype': 'Salary Component', 'salary_component': _('Arrear'), 'description': _('Arrear'), 'type': 'Earning'},
+		{'doctype': 'Salary Component', 'salary_component': _('Leave Encashment'), 'description': _('Leave Encashment'), 'type': 'Earning'},
+		
 
 		# expense claim type
 		{'doctype': 'Expense Claim Type', 'name': _('Calls'), 'expense_type': _('Calls')},