Question

Journal entry of salary payable to clerk

Answer 1

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

Cash  A/c - real A/c , where money  goes out of  the business , therefore its credited

Salary A/c - Nominal, its a expense to the company therefore its debited

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Journal entry

Salary  A/c    Dr  

        To cash A/c

(being salary paid to clerk )

# i assumes its as cash transaction

if its paid through cheque or demand draft Bank A/c will be credited

Answer 2

Salary a/c ...... Dr
  To Salary Payable a/c

Salary will be debited as it is an expense. Salary Payable is a liability hence it will be credited.