What is the journal entry for salary paid to employees?
William Jenkins
Updated on December 31, 2025
Salary expense is recorded in the books of accounts with a journal entry for salary paid….Accounting rules applied – Three Golden Rules.
| Salary Account | Debit | Debit all expenses – Nominal A/C |
|---|---|---|
| Cash/Bank Account | Credit | Credit what goes out – Real A/C |
How do you record salary pay?
Make the Adjusting Journal Entries Debit salaries expense and credit salaries payable to record the accrued salaries. Salaries expense is an income-statement account that reduces the net income for the period. Salaries payable is a balance-sheet short-term liabilities account.
How do you account for salary?
Debit the wages, salaries, and company payroll taxes you paid. This will increase your expenses for the period. When you record payroll, you generally debit Gross Wage Expense and credit all of the liability accounts.
How can I pass advance salary in Tally?
Go to Gateway of Tally > Accounting Vouchers > F5: Payment. Click N: Nature of Payment > Advance payment under reverse charge to mark the voucher for advance payment. Select the Stock Item (goods enabled for GST) or Ledger Name (services enabled for GST), and enter the Advance Amount.
What type of expense is salary?
Wage expense is a variable-rate cost, which depends on the type of wage (e.g., a time wage, piece wage, or contract wage). Salary expense is a fixed-rate cost and depends on each employee’s salary contract terms.
Is salary advance an expense?
salary paid in advance is initially recorded as an asset because it provides some future economic benefit and is charged at the time when the actual benefit is realized in the succeeding accounting period. The amount of Prepaid salary is deducted from salary and shown on the debit side of profit and loss account.
What is an advance on salary?
A salary advance is when your employer agrees to give you a portion or the entirety of a future paycheck before your usual payday. Salary advances involve a private loan agreement that exists between you and your employer.
