SALARY SALARY PAYABLE
It is an expense It is a provision for expense
It is normally used if Salary paid same month It is normally used if Salary paid next month

Example

Salary of April paid by cash Rs 50000 on the last date of month

 

30 April

Salary Dr   50000

    To Cash             50000

 

 

 

 

 

Example

Salary of April paid by cash Rs 50000 on 10th May

30 April

Salary Dr   50000

    To Salary Payable        50000

 

10 May

Salary Payable Dr   50000

                    To Cash             500000

 

\

    

 

Assignment

Salary sheet of January is as follows

Employee Name Salary
P 6000
Q 10000
R 15000
S 20000
T 4000
Total 55000

As per company policy,salary is paid on 5th of next month

Pass Entries for January and Feb

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.