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What is an outstanding salary account?

(a) Real account

(b) Personal account

(c) Nominal account

(d) None of the above

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Question added by Shamseer KM , Accounts and Admin Payroll , KBM Group
Date Posted: 2016/12/26
ibrahim serag
by ibrahim serag , foreign purchasing& Logistics Management Specialist at shams Group 2012- present , Shams industrial

Outstanding salary is representative personal account but salary is a nominal account since it represent expenditure. This is point wort noting since lot of confusion exists among various people in this regards .salary a/c dr.to outstanding a/c(salary for outstanding)This is called "adjusting entry" which is normally passed at the end o the year to take into account incomes and exp not received /paid but pertain to current year in tune with the accrual matching concept.

which is relevant to current period but still Payable

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

unpaid amount of salary on the end of the year

Abraham George
by Abraham George , 3 D Designer / 3 D Visualizer (Event & Exhibition Stands) , Eafel Construction

the answer is Nominal account

Mohammed Omar Khan
by Mohammed Omar Khan , Chief Financial Officer , Mr. Raut P.G

Nominal account since it is a provision to be later transfered to P&L account

Ahmed Jad
by Ahmed Jad , Accounts manager , Alj

Salary outstanding is an administrative expense or rather an Indirect expense. If the salary outstanding is related to previous year then it shall be debited to profit and loss account as an expense and the amount related to current year shall be shown as current liabilities under the liabilities side of the balance sheet.

the answer is (c)-Nominal Account

Muhammad Sabith
by Muhammad Sabith , Accountant , SIMORA

Salary is Nominal Account..

 

and Outstanding salary is - Personal Account 

 

Answer B 

Anwar Najmaddin Hassan حسن
by Anwar Najmaddin Hassan حسن , Financial Analyst , Alrajhi Banking & Investment Corp.

it is a current liability, because it is a salary not payed yet.

Abdullah Aziz Eldain Morsi  Elgendy -        CMA  Candidate
by Abdullah Aziz Eldain Morsi Elgendy - CMA Candidate , Regional Receivable Accountant , Amiantit Group of Companies

  thanks for your invitation ,

the answer is B,C but  weighted    answer B

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