Question

When salary is paid to Ms. Asha in cash, the entry will be Salary A/c Dr. To Cash A/c.
Similarly, when cash is paid to Mr. Ahmed (Creditor), the entry will be Mr. Ahmed
A/c Dr To Cash A/c State why the difference. Why Ms. Asha is not debited over
here?

Answer 1

Answer:

Salary paid to Asha in cash no hit personal account (As hard) as no pending amount against her while cash is paid to Mr. Ahmed (Creditor), hit personal account (Mr Ahmed account) as it is payment against credit