Question

Salary paid to ram . ram ac is credited or not

Answer 1

Ram A/C will not be credited. Since the Journal Entry is as follows. Salary A/C.  Dr. Rs.xxx    To Cash A/C.  Rs.xxx (Being salary paid to Ram) You can see that Cash A/C should be credit. If Ram A/C is credited , he becomes our creditor, which is not true.

Answer 2

3 golden rules

• debit the receiver , credit the giver

• debit what comes in , credit what goes out

• debit all the expenses and losses , credit all the incomes and gains

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reason for debit and credit

2 accounts affected salary A/c and cash or bank A/c

Salary A/c - nominal A/c , its a expense to he company therefore its debited

• Cash A/c - real A/c - if salary paid in cash , money goes ou of the company therefore its credited

                                      (or )

• Bank A/c -personal A/c , banker is the payer where money giver , therefore its credited

* note -Ram a/c not debited . only salary account debited . if we debit ram account its seems like hes to the creditor to the company . ram is the employee hes the own staff of company ,its expense to the company therefore   salary A/c debited

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Journal entry

Salary A/c    Dr

           To Cash or bank A/c

(being salary paid)

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