Journal Entry and Ledger Posting for Cash payment towards Salary

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 Cash.

On Cash Payment for Salaries,

Salaries Account shows Debit effect and,

Cash Account shows Credit effect.

Journal Entry

Journal Entry for Salary paid through Cash.

Ledger Posting

In Salaries Ledger Account.

Salary paid through Cash - Posting in Salaries Ledger Account.

In Cash Account

Salary paid through Cash - Posting in Cash Account

Example :

In the Books of M/s.Trimurthy Traders, Salary paid to employees for ₹10000/- on dt.02/05/2021 for the month of April' 2021.

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Salary paid through Cash

In the above example 

Debit Ledger is :

  • Salaries Account

Credit Ledger is :

  • Cash Account

Journal Entry

Journal Entry for Salary paid through Cash.
Ledger Posting

In Salaries Ledger Account.

Salaries paid through Cash - Posting in Salaries Ledger Account.

In Cash Account.

Salaries paid through Cash - Posting in Cash Account.

 << Previous | Next >>



Location: Cuttack, Odisha, India

Comments

Post a Comment

Popular posts from this blog

Ledger Account and Account Head

Image
Meaning of Ledger Account and Account Head in Financial Accounting with example.  Ledger Account : A ledger Account is a summarized statement of transactions related to a particular Person, Asset/Liability, or Income/Expense for a particular period showing opening and closing balance. A Ledger Account is posted from the Journal Register or Journal Book,commonly in a date wise ascending order. The transaction date of Ledger Account is same as the transaction date of Journal Register. In practical,Accountants omit Recording of Journal Register and post Ledger Account directly from Primary documents like Credit Voucher,Debit Voucher,Purchase Invoice,Sales Invoice,Bank Payment Acknowledgement,Bank deposit slip or Pay-in-slip etc. to avoid more time consumption. Name and Address of the Business Organization is mentioned on the top of the Ledger Account. Below the Name and Address of Organization, Name and Address of other party Ledger Account is mentioned in case of Personal Accounts like S
Read more

Journal in Financial Accounting

Image
Meaning of Journal in Financial Accounting with Example Journal is a first Accounting Record Book,in which all the transactions of a business organization are recorded in chronological or orderly manner i.e ascending date wise order from the primary Accounting documents like Credit Voucher,Debit Voucher,Purchase Invoice,Sales Invoice,Bank Payment Acknowledgement,Bank Deposit Slip or Pay-in-Slip etc. Due to the first entry of Original transactions in Journal, this is also called the "Book of Original Entry" For recording the Journal Book or Journal Register,one has to follow/understand the below mentioned three topics. Types or Classification of Accounts - For details about types of Account click here   Debit and Credit Rule - Click here to know details.  Rules of Double Entry System of Book Keeping - For details about Rules of Double Entry System of Book Keeping click here      Sample format of Journal in Financial Accounting Journal consists of Five Columns Date : This c
Read more

Double Entry System of Book-Keeping in Financial Accounting

Image
What is Double Entry System of Book Keeping in Financial Accounting ? A simple Understanding on Definition/Explanation/Outline/meaning of Double Entry system of Book-keeping in Financial Accounting with example Double Entry System of Book-keeping in Financial Accounting is a system, which means each and every Business Transaction affects or involves at least two Account. One is Debit Account and the other is Credit Account It may be more than two Accounts in a Business Transaction If only two Accounts are found in a transaction one Account will be Debited and the other Account or opposite Account will be Credited. If more than two Accounts are found in a transaction the Debit total amount must be equal to the Credit total Amount. Each and every business transaction in Double entry system of Book-Keeping is based on Traditional Approach and Accounting Equation Approach In both the above approaches, Journal Entry for a particular business transaction is same.           a)    Traditiona
Read more