Journal Entry For Salary

Salary is paid by every organization to its employees and that is the reason why it is important to know what journal entries are passed for recording salary into books of account. Journal entry for salary can be passed in 2 ways

In the first method following entry is passed

Salary account Dr

To Cash account

Since salary is the expense ( keeping in mind the accounting principal debit all the expenses) it is being debited and cash is going out of the company (keeping in mind the accounting principal credit what goes out) it is credited.

In the second method there are two entries passed, in first entry provision is made for expense

Salary account Dr

To Provision for Salaries

After transferring the expense to provision at the time of actual payment of salaries another entry is made and that is

Provision for Salaries

To Cash

0 comments… add one

Leave a Comment

Related pages

unbilled deferred revenueadvantages and disadvantages of lifo methodcharacteristic of capitalist economybearer cheque and order cheque meansdefine materiality in accountingcross rate formuladefine certificate of depositsadvantages and disadvantages of population growthadvantages of marketing segmentationwhat are the disadvantages of social networkingpricing strategies advantages and disadvantagesjournal entry for paying salariesprivatization advantages and disadvantageswhat is the difference between cheque and draftadvantages of takeoversimportance of horizontal analysisdividend wikipediafictitious assetindirect quotation examplecurrent cost accounting advantages and disadvantagesdisadvantages of advertisementcapitalism weaknessestds full formdifference between unqualified and qualified audit reportwhat is horizontal and vertical analysisaum full forminferior good vs normal goodcommand economy country listdemerits of online shoppingquota vs tariffcomparative balance sheet examplewhat are the drawbacks of democracywhat is convention of materialitythe merits and demerits of internethorizontal analysis of financial statementcost-oriented pricing strategiesexamples of an assetlocational arbitragedisadvantages of currencywhat is the difference between direct expenses and indirect expensesadvantages capitalismhire purchase accounting questions and answersnatural resources advantages and disadvantagessemi durable consumer goodsrelevant costing for managerial decisionsdifference between hire purchase and installmentcomplementary goods economics exampleshorizontal mergersbhel companyadvantages of cash flow statementadjusting journal entries unearned revenuefeatures of monopolistic competition in economicscommand economy country listinternet merits and demeritsdefinition of forfeitingcumulative and non cumulative preference sharesmerit & demerit of internetan example of complementary goods would bewhich of these is an example of indirect taxrecording unearned revenueadvantages and disadvantages of oligopoly competitiondurable or nondurable goodsscope of micro and macro economicsdisadvantage of sales promotionpurely competitive market examplesmarketing skimming pricingadvantages and disadvantages of developing countriesdurables goodsmonopolistic competition market structuresinferior goods examplesskim pricing examplesinelastic goodsdefine consigneesslr crrdefine conglomerate diversification