What would be entry in books of accounts, If salary of employees paid for proprietor capital a/c ?
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Quick Summary
This discussion addresses the accounting entry for employee salaries paid directly from a proprietor's capital account. It clarifies that salaries are typically an expense paid from the bank, not capital. If funds are unavailable, the proprietor may introduce money (debiting bank/cash, crediting capital) before the salary payment (debiting salary expense, crediting bank). It also touches on practical issues like unexpected bank account closures.