John Hay In: Category - Journal EntriesWhat is the journal entry for salary due?journal entrysalary due ShareFacebook1 AnswerVotedRecent Vaishnavi_Shetty 2020-09-01T19:55:49+05:30Added an answer on September 1, 2020 at 7:55 pm This answer was edited. Salary due is the amount of salary payable for a particular period but the related services corresponding to the amount of salary payable have already been availed by the business entity. It is also known as salary outstanding. It is a liability for the business entity.Journal Entry for Salary DueJournal entry for salary due/payable can be recorded in the books of accounts using both the golden rule and the modern rule of accounting.1. According to the “Golden rules” of accountinga. Entry for salary dueSalary A/cDebitNominal accountDebit all expenses and losses To Outstanding Salary A/cCreditPersonal account (Representative)Credit the giver(Being salary due)b. Entry at the time of actual payment of the salary dueOutstanding Salary A/cDebitPersonal account (Representative)Debit the receiver To Cash/Bank A/cCreditReal account/Personal accountCredit what goes out/Credit the giver(Being salary paid)2. According to the “Modern rules” of accountinga. Entry for salary dueSalary A/cDebitExpenseDebit the increase in expense To Outstanding Salary A/cCreditLiabilityCredit the increase in liability(Being salary due)b. Entry at the time of actual payment of the salary dueOutstanding Salary A/cDebitLiabilityDebit the decrease in liability To Cash/Bank A/cCreditAssetCredit the decrease in assetExampleABC Ltd did not pay salary 100,000 for the month of March 20xx due on 31st March 20xx because of lack of funds. However, they paid the due salary on 25/04/20xx.1. Journal entry for salary due on 31/03/20xxSalary A/cDebit100,000Debit the increase in expense To Outstanding Salary A/cCredit 100,000Credit the increase in liability(Being salary due for the month of March 20xx)2. Journal entry at the time of payment on 25/04/20xxOutstanding Salary A/cDebit100,000Debit the decrease in liability To Cash/Bank A/cCredit 100,000Credit the decrease in asset(Being salary paid for the month of March 20xx)0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?