Saleries Payable is it a debit or credit?

Got a question for you. What does your sign in name mean ? How do you pronounce it ?

Tick

Hello - salaries payable is a credit when you intend to increase the account. For example,

DR Salaries Expense (to expense salary in the expenses section of the income statement)

CR Salaries Payable (to set-up as a current liability in the balance sheet)

I hope this helps! - Adrian

Salaries Payable is credit, if you are doing the Income Statement. But it is debit if you are recording it into a T-Account. :)

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Originally Posted by tickle

Got a question for you. What does your sign in name mean ? How do you pronounce it ?

tick

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I think you have guessed it... Blue Eyed Ohio Gal

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Originally Posted by rehmanvohra

I think you have guessed it..... Blue Eyed Ohio Gal

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LOL, actually no I hadn't. You are very good !

Tick

ava_viktoria -

1) Salaries Payable isn't even on an income statement.
2) Financial statements are not about debits & credits. The columns are merely for the sake of organizing the information that comes from the ledger accounts. They could have 3 or more columns, and those columns do not represent debits & credits.
3) Whether something is a debit or credit is determined only by the type of account it is. The type of account it is does determine which statement it goes on, but which statement it goes on can't tell you if it's a debit or credit. Something isn't going to be a credit "because" it's on some specific statement.
4) The normal balance of an account does not change. So it's not going to be one thing "if you're doing the income statement" and another thing "if you're doing a t account." It's normal balance remains the same, based on a set of rules that doesn't go around changing.
5) A payable account has a normal credit balance. Period. You can both debit & credit the account, but its normal balance is still a credit and that isn't going to change "if you're doing a t account." (i.e. what I said in #4)