Forums
Back
Basic question
Accountancy
As I am little bit confuse in basics please try to solve my problem. Is these 2 entries are interrelated or not and if yes please elaborate
Answers (17)
first entry is salary paid in advance,so debited which is from company's point of view.Next one is from EMPLOYEE point of view which is income received.
Thread Starter
Samarth KshatriyaAnd what does Prepaid salary a/c dr To salary a/c Means?
Say salary for March 2022 and April 2022 is paid in 31st March 2022. (Rs. 10,000 per month) If the entry is passed as Salary A/c Dr. 20,000 To Bank. 20,000 We would have booked extra expenses. 10,000 of salary pertains to april. So we pass an entry Prepaid Salary Dr. 10,000 To Salary 10,000
CA Suraj Lakhotia Admin
Say salary for March 2022 and April 2022 is paid in 31st March 2022. (Rs. 10,000 per month) If the entry is passed as Salary A/c Dr. 20,000 To Bank. 20,000 We would have booked extra expenses. 10,000 of salary pertains to april. So we pass an entry Prepaid Salary Dr. 10,000 To Salary 10,000
Sir can we write the below entry Salary a/c dr To cash a/c P&l a/c dr Prepaid Salary a/c dr To cash a/c
