Account Information

Financial Statement Statement of Financial Position
Normal Balance Credit

Definition

Monthly employee salaries due for payment

Common Journal Entries

Accrue employee salaries

Dr. Salaries Expense
Cr. Salaries Payable

Pay employee salaries via bank

Dr. Salaries Payable
Cr. Bank Account

Deduct advance from employee salary

Dr. Salaries Payable
Cr. Employee Receivables

Deduct social security from salary

Dr. Salaries Payable
Cr. Social Security Payable

Accrue employee salaries

Dr. Salaries Expense
Cr. Salaries Payable

Pay employee salaries via bank

Dr. Salaries Payable
Cr. Bank Account

Deduct advance from employee salary

Dr. Salaries Payable
Cr. Employee Receivables

Deduct social security from salary

Dr. Salaries Payable
Cr. Social Security Payable

📐 IFRS vs US GAAP Accounting Treatment

IFRS IAS 19 Employee Benefits
US GAAP ASC 710 Compensation - General

❓ Frequently Asked Questions

Q: What is the difference between salaries payable and prepaid salaries?

A: Salaries payable: service rendered but not yet paid (liability). Prepaid salaries: paid before due (asset).