Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Salary payable to an employee $ 50, 00. Which account is to be credited?

 

(a)  Cash  A/c

(b)  Salaries  A/c

(c)  Outstanding Salaries  A/c

(d)  None

user-image
Question added by Shamseer KM , Accounts and Admin Payroll , KBM Group
Date Posted: 2016/02/20
Muhammad Sabith
by Muhammad Sabith , Accountant , SIMORA

i think the correct answer is " Salary Payable" .... thanks for adding good question

Santosh Kumar Arukh
by Santosh Kumar Arukh , AGM- FINANCE & TAXATION , JFE ENGIEERING CORPORATION

c) Outstanding Salary A/c - will be credited.

 

The reason stated below:

When Salary is due & to be paid to employee  means its outstanding Salary & Payable. Its liabilities for company.

 

The Original entry is required to pass on the end of month or Due date; such as:

 

Salary A/c   Dr $50,00

 To Salary Payable / Outstanding Salary. ( Cr) $50,00 

Sujit Sahu
by Sujit Sahu , Account Manager , Hippocampus Learning Centres Private Limited

Salary Payable Account to be credited

Shameer Nazir Madari
by Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

Salary is not yet paid so the entry will be

Debit - Salary Expenses

Credit - Outstanding Salaries  A/c or Salary Payable

Mohammad Aly
by Mohammad Aly , SAP FICO Teamlead , Atos

It depends:

Case 1: Cash Payment immediately:

Debit: Salary Expenses

    Credit: Cash

 

Case 2: Payable later:

Debit: Salary Expenses

    Credit: Payable Salaries

           ---------

Debit: Payable Salaries

    Credit: Cash/Bank

 

Regards,

Mohammad

 

 

Mohammed Amin Abd El-halim
by Mohammed Amin Abd El-halim , Accounts Manager , KAPCI Coatings Company ( Port Said )

Salaries  A/c

        Outstanding Salaries  A/c

             (   Maturity entry)

                ___________

Outstanding Salaries  A/c

        Cash  A/c  Or bank A/c

               ( Payment entry )

 

Muhammad Usman Zubair
by Muhammad Usman Zubair , Manager Accounts -Projects , Bahria Town Construction Wing Phase-8

C is the option outstanding salary a/c

 

Md. Omar Faruq
by Md. Omar Faruq , Manager-Accounts & Finance , The Rani Re-Rolling Mills Limited.

To record this transaction in the books of account, the journal entry to be passed:

Salaries Expenses...................Debit

Salaries payable/Outstanding Salaries A/C........................Credit

So the right answer to this question is options-(C) Outstanding Salaries A/C.

Hamza Rehman
by Hamza Rehman , Assistant Manager

Option C is right answer as Salary payable would create liability for employer to make payment in future

Mohammed Thoufique Thoufi
by Mohammed Thoufique Thoufi , CMA Accounts Article , Muncipal Office Guruvayur Goverment of Kerala

if salary is paid cash is to be credit and if it is not paid at current period outstanding salaries is to be credit

Deleted user
by Deleted user

c.Outstanding Salaries  A/c

More Questions Like This