Question

What is an example of an entry that records the payment of salaries by a business?

Answer 1

An example of a journal entry that records the payment of salaries by a business would typically involve debiting the Salary Expense account and crediting the Cash or Bank account to reflect the outflow of cash. Here's how it would look:

### Journal Entry

**Date:** [Insert Date]

| Account Title | Debit | Credit |
|-----------------------|--------------|--------------|
| Salary Expense | XXX | |
| Cash/Bank | | XXX |

**Description:** Recorded the payment of salaries for the month of [insert month/year].

### Example with Numbers

Suppose a company pays $5,000 in salaries:

**Date:** [Insert Date]

| Account Title | Debit | Credit |
|-----------------------|--------------|--------------|
| Salary Expense | 5,000 | |
| Cash/Bank | | 5,000 |

**Description:** Recorded the payment of salaries for the month of September 2023.

In this entry:
- "Salary Expense" reflects the cost incurred for employee salaries,
- "Cash/Bank" shows the reduction in cash due to the salary payment.