Question

Paid salary by cheque, identify which is Dr and cr?

Answer 1

The Current transaction affects two accounts salary account(it is a nominal account;all losses Gains income expenses come under nominal account;salary is an expense),, Bank account.. because salary is paid in Cheque/cash ...(it is a Real account; all assets and Liabilities come under Real account; bank balance/cash balance is an asset) ..


The Three golden rules of accounting are....

Personal Account: Debit the receiver, credit the giver

Nominal account: Debit All expenses and losses, credit All incomes and gains

Real Account: Debit what comes in ,credit what goes out

In contention with the above rules...

salary account should be debited (it is a nominal account/its an expense)

Bank/ account should be credited (it is a Real account/cash from bank is Going out)

The Journal Entry will be....

salary a/c Dr xxxxx

To /Bank a/c. xxxx

(Being salary paid)

Answer 2

Answer:

Salary A/C is debited

Bank a/c is credited

Explanation:

Journal entry is the process of making records of the transaction and events takes place

• Personal account - Debit the receiver , credit the giver
• Real account - Debit what comes in , Credit what goes out
• Nominal account - Debit all the expenses and losses, Credit all incomes and gains
• Salary paid by the cheques is the transaction to recognise the account ,.

1. Salary, bank are the accounts in this transaction
2. Salary => Expenses=> Debit
3. Bank=> Amount goes out =>Credit

Therefore , the entry is

Salary a/c Dr.

To Bank a/c