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Others   13 June 2021

Journal Entry query

Which entry is correct?

Salary A/c ... Dr
To Bank A/c
OR
Salary A/c .... Dr
To Salary Payable A/c
Salary Payable A/c ..... Dr
To Bank A/c

Why do we need to first Due the expense and then Pay it, for what kind of items we make the same treatment?

Please solve.


 5 Replies

yasaswi gomes

yasaswi gomes (My grammar is 💯 good I)     13 June 2021

Second is correct because, it records that payments are made to employees under payables

Muhammed Ibrahim Badusha

Muhammed Ibrahim Badusha   13 June 2021

If you follow cash basis in accounting first one is correct, if you are following accrual basis in accounting second one is correct.
1 Like
Manikanta juluri

Manikanta juluri (Student)     14 June 2021

Second is correct as per accrual basis
Sourav

Sourav (Student)     14 June 2021

Second entry is correct
MuraliKrishna S

MuraliKrishna S   15 June 2021

We follow accrual concept , so second is correct

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