Question

Paid advance to employee against his salary

Answer 1

Journal entry

Prepaid salary A/c   Dr    

       To cash or bank A/c  

(being salary paid in advance )

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Prepaid salary is the asset and its expense to the company  therefore its debited

Cash goes out of the company therefore its credited

If paid through cheque or bank draft its credited as Bank A/c

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Accounting equation

Increase in asset as prepaid salary  

                    and

Decrease in cash ( asset )