Question

salary paid in cash₹3000​

Answer 1

ANSWER :

❒ Given the transaction is :-

• Salary paid in cash Rs. 3000

❒ Journal Entry :-

$: \mapsto: \: \: \sf{ \large{ Salary \: \: A/C \: \: Dr. \: \: \: Rs. \: 3000}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \sf{ \large{ \: \: To \: \: \: Cash \: \: \: \: A/C \: \: \: \: \: \: \: \: \: \: \: \: \: Rs. \: 3000}} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \\ \\ \sf{ \large{[ \: Being \: \: salary \: \: paid \: \: in \: \: cash \: ] }} \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \: \:$

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EXPLANATION :

❖ The three steps involved in the process of journalising the given transaction are :-

• Step 1. Identification of accounts : In this transaction, miscellaneous expenses paid in cash. Hence, the two accounts involve in this transaction are : Salary A/C and Cash A/C.

• Step 2. Classification of accounts : According to the Modern Approach of classification, Salary A/C is an Expense Account and Cash A/C is an Asset Account.

• Step 3. Application of Debit and Credit rule : When Miscellaneous expenses paid, the value of Expense increases. Therefore, the Salary A/C will be debited (as per the rule being increase in Expsense :Debited). Again, the expenses paid in cash and hence the Asset in the form of Cash decreases. Therefore, Cash A/C will be credited (as per the rule being Assets decrease: Credited).