Salary Expense Closing Entry

Closing Journal Entry For Salary Expense Account In Accounting?

Salary Expense is a Temporary Account and closed to Income Summary Account at the end of the accounting period.

The closing entry to record salary expense is shown below:

 

                                          Income Summary a/c  XXX

 

                                                                             Salary Expense a/c  XXX

                                 (Salary Expense a/c closed to Income Summary Account)

As salary expense account’s balance is debit, so to close it, we credit it and debit income summary account in order to transfer salary expense account to income summary account.

As salary expense account is closed, so it is also treated as an Income Statement Account and recorded in Income Statement.