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What type of account is salary account?

Rushikesh (Chartered Accountant - Manager Finance) (2375 Points)

22 May 2008

In your opinion what type of account is Salary account?

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6 Replies

Santosh Mehra (Articles Student) (72 Points)
Replied 22 May 2008

Salary is a Nominal Account & appers in the P&L A/c

while salary payable is a personal account & appears under current Liabilities

salary advance also is a personal account & appears under Current asssets : Loans & Advances

M.Sriram Shenoy (CA Final) (814 Points)
Replied 22 May 2008

Mr.Santhosh is right. Salary is nominal account which is charged as expenditure.

Shreyalmuri (CA Final) (236 Points)
Replied 22 May 2008

its an equallient to Savings account.......;-)

(Guest)

Originally posted by :santosh

This is ok. I agreed. But what is the meaning of Salary Advance.

Salary is a Nominal Account & appers in the P&L A/c
while salary payable is a personal account & appears under current Liabilities
salary advance also is a personal account & appears under Current asssets : Loans & Advances

shahyar husain (1235 Points)
Replied 13 November 2020

By definition, a Salary Account is a type of Savings Account, in which the employer of the account holder deposits a fixed amount of money as 'salary' every month. It is an expense account and is a nominal account.