Accrued Salary is part of which Statement? 1. Income Statement 2. Balance Sheet

Balance Sheet

Balance Sheet, as it is a Current Liability.

Accrued salary means unpaid salaries, its a part of P&L Accounts & Balance Sheet as well.
In P&L Account we consider it as expenses whether paid or unpaid in order to valuate the Net Profit.
In Balance Sheet if the salaries is unpaid (accrued) then it is treated as current liability and will be recorded credit side of the balance sheet.