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