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    pbl235's Avatar
    pbl235 Posts: 1, Reputation: 1
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    #1

    Oct 27, 2010, 11:54 AM
    How to treat salaries payable?
    Say you had 'Salaries payable' from the previous year, say 2009, amounting to $500. What if for this year salaries amounted to $6,000 and the $6,000 is inclusive of the $500 accrued. Would you:

    Debit Salaries expense 5,500
    Credit Salaries payable 5,500
    And use the accrued 500 as balance brought forward for salaries payable?
    Please help me. Thanks in advance.

    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    Oct 28, 2010, 06:47 AM

    Debit Salaries Expense for 5,500 because 500 was expensed in the previous year.
    mmresd's Avatar
    mmresd Posts: 2,002, Reputation: 553
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    #3

    Nov 2, 2010, 08:23 AM
    Since the 500 were already expended from last year, then you would Dv Salaries Exp. For 5.5k
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #4

    Nov 2, 2010, 05:27 PM

    The debit entry will be Salaries Expense for 5,500
    The credit entry will be to Cash for the amount paid and Salaries Payable for the amount not yet paid
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