__________sub system deals with payment of wages and salary to employees.

Pay Roll Accounting is the subsystem that deals with payment of wages and salary to employees.

This subsystem handles all aspects related to employee compensation including:

• Calculation of gross wages/salaries based on attendance, working hours, or piece rates
• Deductions like Provident Fund (PF), Employee State Insurance (ESI), Tax Deducted at Source (TDS), professional tax
• Computation of net salary (Gross salary - Deductions)
• Recording of salary payments in books of accounts
• Maintenance of employee records and salary registers

The other options deal with different areas:

Fixed Assets Accounting → Records and manages long-term assets like land, buildings, plant and machinery

Purchase and Accounts Payable → Handles purchase of goods/services and payments to suppliers/creditors

Inventory → Manages stock of goods including raw materials, work-in-progress, and finished goods

Since the question specifically mentions "wages and salary to employees", Payroll Accounting is the dedicated subsystem for this function.