I AM PASSING JOURNAL ENTRIES FOR SALARIES, ELECTRICITY CHARGES ...ETC. I AM PASSING ENTRY
SALARY A/C-----DR
TO SALARY PAYABLE.
WHEN PAYMENT MADE
SALARY PAYABLE A/C----DR
TO CASH/BANK.
SALARY A/C I GAVE UNDER INDIRECT EXP. SO IN P&L A/C IT IS APPEARING OR BOOKING AS J.V. SO IN P&L J.V'S COME OR NOT?. EXPENDITURE UNDER HEAD OF A/C SALARY PAYABLE.
01 October 2011
payable is a liability-not an expense until paid for, and liability does not form the part of P&L, corresponding expense already hit the P&L and as money (salary) is still to be paid, equally shown in liability in the BS
CAclubindia
