Journal Entry and Ledger Posting for Salary paid through Bank Account.

on

Salaries are the amount of expense which is paid to the employees of a Business Organization against their service provided. 

Generally Salaries are fixed in nature for one Accounting Year.

Salaries are paid in Monthly/Quarterly/Half Yearly/Yearly basis.

In maximum cases Salaries are paid in Monthly basis.

Now let's discuss about the Journal Entry and Ledger posting procedure when Salaries are paid through Bank Account.

On Payment of Salaries through Bank Account

Salaries Account shows Debit effect and,

Bank Account shows Credit effect.

Journal Entry

Journal Entry for Salary paid through Bank Account.
Ledger Posting

In Salaries Ledger Account

Salary paid through Bank Account - Posting in Salaries Ledger Account.

In Bank Account.

Salary paid through Bank Account - Posting in Bank Account.

Example :

In the Books of M/s.Trimurthy Traders, Salary paid to employee for ₹10000/- on dt.01/07/2021 for the month of June' 2021 vide Cheque No.700106 of Axis Bank Current Account.

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Salary paid through Axis Bank Current Account.

In the above example 

Debit Ledger is :

  • Salaries Account

Credit Ledger is :

  • Axis Bank Current Account

Journal Entry

Journal Entry for Salary paid through Bank Account - Example

Ledger Posting

In Salaries Ledger Account

Salary paid through Bank Account - Posting in Salaries Ledger Account - Example.

In Axis Bank Current Account.

Salary paid through Bank Account - Posting in Bank Account - Example.

  << Previous | Next >>

Location: Cuttack, Odisha, India

Comments

Post a Comment