Salary entry

Because it was an expenditure of particular month and passed to salary payable under current liabilities. Some employees may have taken advances or penalties and etc..the same should be adjusted with salary payables. And also statutory issues also adjusted from SALARY A/C (gross salary) to SALARY PAYABLES A/C.(net salary to be paid)

Generally accural of salary in last of the month, accounting entry is to be done on accural bassis, that is the reason we book expense by creating liability (salary payable) on last of month and paid subsequently.

 If salary paid on the same day, you may credit your bank account instead of salary payable. But for better representation and informative of accounts it is recommended to book the salary through salary payable

Thanks you very much 

 

As salary is calculated on accrual basis of accounting so at the month end........

(if salary payable at the following month) entry is passed as :-

SALARY A/C Dr 

To SALARY PAYABLE A/C 

or else if paid at the end of the month:-

SALARY A/C Dr 

To BANK A/C.