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jsoliz
Apr 21, 2007, 11:42 PM
When crediting salary payable which account should be debited?

ThePhantom
Apr 22, 2007, 08:06 AM
'Salary expense' should be debited.

As per accrual basis of accounting, expenses should be recognized when incured.

[Dr.] Salary expense XX
[Cr.] Salary payable XX

This adjusting entry is passed at period end.

When actual payment is made :

[Dr.] Salary payable XX
[Cr.] Cash XX