Does golden rules of accounting applies to transfer entries

For example
salary is an expense
and entry is

p&l a/c dr
To salary a/c.

(does golden rules of accounting . those 3 personal, real, nominal will they apply here?
please explain with the reason
thank you🙂
Replies (4)
Quick Summary
This discussion clarifies whether the golden rules of accounting (personal, real, nominal) apply to transfer entries. It explains that these rules are fundamental and do apply, particularly when dealing with nominal accounts like salary expenses. Transfer entries, such as debiting P&L and crediting salary, serve to close expense accounts and summarise them, with both accounts being nominal.

Dr what comes in Cr what goes Out (Salary-Cash goes out)

  1. Debit the receiver and credit the giver - personal
  2. Debit what comes in and credit what goes out- real
  3. Debit expenses and losses, credit income and gains- nominal

the easiest way toidentify is,

salay- nominal account, here it is expense, so debited

payables- real account, it is creditor, so what goes out. 

 

Like this, every line item can be identified.

Debit P & L and Credit salary entry is not actually required. If still passed, then, it is transfer from one expense to a summary of income and expenses a/c. Both are nominal accounts. Here, the purpose of this transfer entry is to 'close' the salary expense. and book the same to summary of expenses a/c. The former is akin to income (making expense a/c zero) and the latter is akin to incurring of expense. Hence, Dr. P & L and Cr Salary, both being nominal accounts.

It could be true because ppl who irk in this line of business have more exposure towards treatments. 

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