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.
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