Question

Journal entry Paid Rs 5000 As salary​

Answer 1

Answer:

I guess its different in India. In the US we would call any unearned salary an advance. I assume by calling it “prepaid” you are saying it hasn’t been earned yet.

Dr - salary advance 5000

Cr - cash 5000

Once the salary is earned, the advance is closed out to Salary Expense.

Cr - salary advance 5000

Dr - salary expense 5500

Cr - taxes and insurance withheld 500

** To stay compliant with taxes and insurance deductions, the advance of 5000 would have to be the net pay. When closed out to salary expense, the salary would have to be grossed up and the offset would be withholdings. It is a problem in the US if your SSI deduction on the W-2 does not equal 7.65% of your gross income. So any odd ball salary payment would have to at least have the SSI deducted. If this is an advance on a normal salary payment, it shouldn’t be a problem. When paying an advance, the net should be paid.

Answer 2

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❥︎ ❥︎ ᴊᴏᴜʀɴᴀʟ ᴇɴᴛʀʏ ғᴏʀ ᴘᴀɪᴅ ₹ 5000 ᴀs sᴀʟᴀʀʏ.

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➪ sᴀʟᴀʀʏ ᴀ/ᴄ ... ᴅʀ. ₹ 5,000

ᴛᴏ ᴄᴀsʜ ᴀ/ᴄ ... ᴄʀ. ₹ 5,000

(ʙᴇɪɴɢ ᴀᴍᴏᴜɴᴛ ᴏғ ₹ 5,000 ᴘᴀɪᴅ ᴀs sᴀʟᴀʀʏ)

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${\large\bold\pink{》 ❥︎ \:ꀍꂦᖘꏂ \: ꓄ꀍꀤꌚ \: ꀍꏂ꒒ᖘꌚ \: ꌩꂦꀎ \:♡︎ 《}}$

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${\blue{\huge\underbrace{Thanks \:Please }}}$