Salary Payable Journal Entry

Salary Payable Journal Entry

Salary payable is an accrued liability and therefore credited in the books of accounts. The journal entry for salary payable is shown below. on one hand salary is debited being the expense for the company and on other hand a liability is created with the name of salary payable.

Date	Particulars	Dr.	Cr.
	Salary	$ xxx
	Salary payable		$ xxx

Salary Payable Journal Entry example

On 31 December 2014 salary for the month of December amounting $ 20,000 to be paid in January, 2014 shall be recorded as under. Salary account shall be debited, while salary payable account will be credited.

Date	Particulars	Dr.	Cr.
2014	Salary	$ 20,000
2014	Salary payable		$ 20,000

 

Salary Payment Journal Entry

In next month, when the salary shall be paid, then following entry would be recorded in the books of accounts. The liability would be removed upon payment of liability by debiting the salary payable and crediting the cash.

Date	Particulars	Dr.	Cr.
2014	Salary payable	$ 20,000
2014	Cash		$ 20,000

The above scheme of entries can be used to record all accrued expenses. In first place the expense is debit and related liability is created and then in next stage the liability is removed , when liability is paid off.