 |
| Salary Paid Journal Entry |
When a business pays salaries to its employees, then it is necessary to record the transaction in its accounting records.
Journal Entry for Salary Paid
Salaries Expense Account Debit
Cash or Bank Account Credit
- The "Salaries Expense" account is debited because of considers the expense of employee salaries.
- The "Cash" or "Bank Account" is credited because of reflects the decrease in the company's cash or bank balance.
This journal entry shows the payment i.e. employee salaries, and reducing the company's cash or bank balance, and recognizing the associated expense.
