Question

Paid cash for salery to staff for the month of may RS. 3000
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Answer 1

Answer:

so ans is 280

I hope it will be help ful.

Answer 2

Answer:

Journal Entry for Salary Paid

Salary is an indirect expense incurred by every organization with employees. It is paid as a consideration for the efforts undertaken by the employees for the business. Salary expense is recorded in the books of accounts with a journal entry for salary paid.

Salary is among the most recurring transactions and paid on a periodical basis. The amount of salary payable by the employer to the employee is specified in the employment contract.

Journal entry for salary paid (in cash/cheque)

Salary paid journal entry

Accounting rules applied – Modern Rules

Salary Account Debit Debit the increase in expense

Cash/Bank Account Credit Credit the decrease in asset

Accounting rules applied – Three Golden Rules

Salary Account Debit Debit all expenses – Nominal A/C

Cash/Bank Account Credit Credit what goes out – Real A/C

Accounting Treatment for Salary Payment

The life cycle to account for payment of salary expense (in cash/cheque) goes through a couple of steps as shown below;

Step 1 – Journal entry for salary paid (in cash/cheque)

Salary A/C Debit

To Cash/Bank A/C Credit

Step 2 – Transferring salary expense into income statement (profit and loss account).

Income Statement Debit

To Salary A/C Credit

Presentation in the Financial Statements

It is shown on the debit side of an income statement (profit and loss account)

Salary expense in P&L

Example

On the last day of every month, Unreal Corporation pays salaries to its employees amounting to 250,000. The payment relates to the salary due for the same month. Show related journal entries for salary paid in the books of Unreal Corporation.

End of every month – Journal entry at the time of payment of salary

Salary A/c 250,000

To Cash/Bank A/c 250,000