Question

Outstanding salaries for the month of December 1976, rs. 500 paid. Pass journal entry.
If you don't know, the don't answer me. It is commerce question.​

Answer 1

Answer:

Journal entry

salary a/c Dr

To salary Outstanding a/c

Justification :

Salary a/c - Increase in expense - So it is debited.

Salary outstanding - Increase in liability - So credited. As we are liable to pay.

Salary account is closed by transferring to profit and loss a/c

Salary outstanding is shown on liabilities side of balance sheet.

Answer 2

outstanding salary is debit and it paid so the right entry is

outstanding salary a/c 500

To cash a/c 500