Question

Adjustment entrie of salaries due

Answer 1

Answer:

salaries a/c Dr

To outstanding salaries a/c

Explanation:

it has no golden rules but it means outstanding salary is added to current year salary expenses a/c.it is useful for deducting the true value of profit.

if the salary paid to the staff as prepaid salary . the it is the entry in the book of accounts .

prepaid salaries a/c Dr

To salaries a/c

Answer 2

Answer:

Explanation

Salaries have 2 adjustment entries.

Firstly, salaries a/c will be debited in P&L a/c.

1) outstanding salaries-- here the outstanding value or accured value will be added to the salaries a/c and will be written in the liability side of the balance sheet.

Example:- salaries-500, outstanding salaries-300.

To salaries a/c (500+300)=800

Liabilities=300

2) prepaid salaries-- here the prepaid or advance value will be deducted(subtracted) to the salaries in p&l a/c and will be written in the assets side of the balance sheet.

Examples- salarie-500, prepaid salarie-200

To salaries a/c (500-200) =300

Assest- prepaid salaries =200.