Accrued Salaries (AS) Journal Entry
We already discussed about Accrued Expenses in our previous topics. So, here we will study about a famous example of Accrued Expenses that is “ Accrued Salaries Or Salaries Payable Or Unpaid Salaries Or Salaries Arrears ”. These are also k nown as Accruals . You may also be Find This Article Helpful, “ Prepaid Rent Journal Entry ” In a company, employees working on suitable position provide services and get reward or Salaries in exchange for services delivered. These Salaries are Expenses for the company because these are necessary to incurred in order to promote products and generate sales. So, these are Outstanding or Accrued for the company at the end of Month, because employees already delivered services for the selected tasks and projects and these are due from company. Suppose, an employee, Mr. A, as a Sales Manager already delivered services for different campaign projects in the Current Month, then the Salary i.e., Rs. 500000 is due ...