Salaries Expense Debit Or Credit
According to the Rules of Debit And Credit , when salaries increase, we debit these means we paid these to employees and when these decrease means we are closing it to Income Summary Account , so we credit these. So, the N ormal B alance or usual balance of Salaries Expense Account is Debit as it is an expense account which is paid by the company to employees for the services rendered by them for the different given tasks or projects during the accounting period. B ut, when these are not paid then these become liability for the company / corporation so we credit Salaries Payable as a Current Liability to pay to employees as they already performed their tasks or projects during the accounting period. In that case, Salaries Expense is called Salaries Payable or Accrued Salaries and it is categorized under Accrued Expenses Or Expenses Payable Or Accrued Liabilities . The company is bound by law to pay to employees for the selected works done by them during the period. ...