Journal Entry For Salary

Salary is paid by every organization to its employees and that is the reason why it is important to know what journal entries are passed for recording salary into books of account. Journal entry for salary can be passed in 2 ways

In the first method following entry is passed

Salary account Dr

To Cash account

Since salary is the expense ( keeping in mind the accounting principal debit all the expenses) it is being debited and cash is going out of the company (keeping in mind the accounting principal credit what goes out) it is credited.

In the second method there are two entries passed, in first entry provision is made for expense

Salary account Dr

To Provision for Salaries

After transferring the expense to provision at the time of actual payment of salaries another entry is made and that is

Provision for Salaries

To Cash