Outstanding expense

Hi,

In the above example. you can assume Salry Outstanding as Payable to  a single person.

Salary A/c Dr

    to Salary Payable - Suri A/c Cr

Then later on when you pay, you can use the personal account rule, debti the receiver and credit the giver......where in the entry

Salary Payable Suri A/c Dr 

     to Bank A/c.

In the first rent Expense is the base hence you have taken Nominal Account  and the second entry the base is Salary Payable hence we need to go with Personal Account rules.

Wat i am trying to convey is we wil take only one leg of the transacton as a base and record but not the both legs.

Suri.

Thanks for the reply. But I think each transaction recorded should follow the golden principles of Accountancy relating to Personal, Real and Nominal Accounts without which the Accountancy cannot be termed the art that it is. So I want someboy to please explain my doubt in more detail.

who said its not following golden rules........it is following.  Can you point out in my example where it is not follwoing rules????

U already have the answer in ur question itself.  !!!!!!!

Outstanding Salary belongs to Representative Personal Accounts, which represent a certain person or group of persons. so, Outstanding Salary represents the accounts of employees, to whom salaries have to be paid.

When salary is not paid, it means, firm is having some amount which belongs to employees, means employees are the givers of particular amount on that date..,(even they are not directly giving to the firm,) and it surely following golden rules... Debit the receiver, credit the giver..

its as same as, firm has paid salary, but employee gave it back for the time being...:)

As per accounting rule  increse in asset must be debited and increse in liablity must be credited..