Salary to the employee comes under expense or liabilty to the
co? how?
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Answer / ajinkya3089
1) If company has paid the salary then following condition
apply
salary is the indirect expenses of the company.and we have
posted entry as a profit and loss account Debit.....
to salary account
2) If company has not paid the salary to emplyoee then
following conditons apply
salary is outstanding of company
outstanding expenses we posted to the
current liablities of the company
i hope r u understood of this concept
ajinkya kamble
9766244989[ajinkyakamble.mba@mmcoe.edu.in]
| Is This Answer Correct ? | 30 Yes | 3 No |
Answer / guest
WHEN, SALARY PAID WITHIN THE PARTICULAR PERIOD
LIKE THAT SALARY OF APRIL MONTH, PAID ON 30 APRIL
AS PER THE IIIrd ACCOUNTING GOLDEN RULES :-
ALL EXPENSES & LOSSES ARE DEBIT
ALL INCOMES & GAINS ARE CREDIT
SALARY TO EMPLOYEE IS EXPENSES, SO
SALARY A/C DR RS.........
TO CASH / BANK A/C RS........
WHEN, SALARY PAID AFTER THE PARTICULAR PERIOD LIKE THAT
SALARY OF APRIL MONTH PAID ON 1 MAY , THAN ENTRY
ON 30 APRIL
SALARY A/C DR. RS..........
TO SALARY PAYABLE A/C RS..........(CURRENT LIABILITY)
ON 1 MAY
SALARY PAYABLE A/C DR. RS.............
TO CASH / BANK A/C RS........
NOTE : - IN THIS ENTRY , NOT INCLUDE , PF , ESI , P TAX , TDS , ADVANCE , ETC.
THANKS & REGARDS
PRAVEEN SHARMA
8130113611
praveenexport2@gmail.com
| Is This Answer Correct ? | 13 Yes | 1 No |
Answer / bharathi
When company paid salary to the employees it should be
treated as indirect expenses it will reflect in profit and
loss account.
The following entries to be passed in the books
Salary A/c
To Cash A/c
When Company not paid (to be paid) to the employees then it
should be treated as liability (because company has to pay
the salary to the employees - so it should be treated as
liability) it will reflect in Balance Sheet under the
coloumn Current Liabilities.
The Following entries to be passed in the books
Salary A/C dr (P&l a/c)
To Salary Payable A/c ( liability a/c)
(provision made for salary)
Once salary paid to the employees then the following entry
to be passed
Salary Payable A/c Dr.
To Cash/ Bank A/c
(Now the liability is nil) (provision which we have made is
cleared now)
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / anonymous
If Salary is of current year then we will treat it as
expense and entry will be:
P & L A/c Dr.
To Salary A/c
and then you transfer this amount to the payable account (it
means Ist u r creating liability and then doing payment) by
making entry:
Salary A/c Dr.
To Salary Payable A/c
and when you paid the salary then entry would be:
Salary Payable A/c Dr.
To Bank or Cash A/c
If you want to create laibility then entry is:
Salary A/c Dr.
To Outstanding Salary A/c
Transferring salary in payable or outstanding A/c means you
creating your liability whose entry already mentioned above.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / moumita
While making the salary we pass 2 entries
1.Salary A/C ---Dr
To Salary payable A/c
2. Salary payable -- Dr
to Bank A/c
The above mentioned entries does not include PTax, and PF Portion. PTax and Employer's contribution to PF are considered as expenses to the company and on other hand Employee's contribution to PF is a Liability
| Is This Answer Correct ? | 4 Yes | 4 No |
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