| 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
View AnswerSalary for the month of January:
On 31 st January
Salary A/c Dr 55000
To Salary payable A/c 55000
On 5 th February
Salary payable A/c Dr 55000
To Bank A/c 55000
Salary for the month of February:
On 28 th February
Salary A/c Dr 55000
To Salary payable A/c 55000
On 5 th March
Salary payable A/c Dr 55000
To Bank A/c 55000
