What Is Prepaid Salary In Accounting - Prepaid Salary Journal Entry
Prepaid Salaries Journal Entries We already studied about Accrued Salaries Journal Entry , but here we will study about Prepaid Salary Journal Entry. It is the amount of Salary Paid in advance. As it is paid in advance, so it becomes the Current Assets of the company. Prepaid Salary is an example of Prepaid Expenses or Expenses Paid In Advance . 2 Methods Of Prepaid Salaries There are two Cases/ Methods of recording Prepaid Salary: (i) When Initially, It Is Recorded As An Asset (ii) When Initially, It Is Recorded As An Expense In the first case, the Journal Entry is as shown below: Prepaid Salary a/c XXX ...