When crediting salary payable which account should be debited?
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When crediting salary payable which account should be debited?
'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
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