What Are Accrued Salaries - Definition - Meaning - Example
What Is Accrued / Payable / Outstanding Salary
Salary is the remuneration, benefit, reward, incentive, etc., paid to employees against the services performed by them for the selected tasks or projects. Salaries becomes accrued or payable or outstanding when these are still payable to employees who already rendered their services for the month but still not received the reward from the company.
For Example, If a company does not pay to employees during the month of Rs. 200000, eventhough all of the employees performed their selected works, tasks or projects during the month,
then it becomes the Liability of the company to pay to employees. So, according to Accrual Basis and Matching Concept Gaap, the company must makes Adjustments for Salaries, so the company passed the following Accrued Salaries Journal Entry:
Accrued Salary Journal Entry For One Employee (Sample)
Salary a/c XXX
Accrued Salary a/c XXX
(Salary Accrued For The Month)
Accrued Salaries Journal Entries For Employees i.e., More Than One Employees (Example)
Salaries Expense a/c 200000
Accrued Salaries a/c 200000
(Salary / Salaries Accrued During The Month)
Salaries Expense a/c 200000
Cash a/c 200000
(Paid Salaries To Employees)
Accrued Salaries T Account is prepared to record journal entries related to it. The final balance is transferred to Balance Sheet as a Current Liability at the end of the period.
Comments