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Categories >> Accounting >> Accounting AllOther
 
 


 

 
 Audit interview questions  Audit Interview Questions (422)
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 Accounting General interview questions  Accounting General Interview Questions (2781)
 Accounting AllOther interview questions  Accounting AllOther Interview Questions (4351)
Question
What is meant by Salaries Outstanding Accounts?
 Question Submitted By :: A.r. Kalpana
I also faced this Question!!     Rank Answer Posted By  
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 1
Salaries Outstanding accounts are a personal a\c.

If a business is not able to pay salary for the last two
months to all the workers or some of them the workers will
be treated as the creditors of the business(since they have
given the services but in exchange they have not been paid
for). The amount due to these employees will be added and
put under one common title "Salaries Outstanding account".

Thus the salary outstanding account is a personnal account
representing the employees.
 
Is This Answer Correct ?    95 Yes 9 No
A.r. Kalpana
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 2
Salaries Outstanding A/c is Nominal A/c. Nominal Account
rule is Debit all expenses and losses, and Credit incomes
and gain. Outstanding Salaries is Liabilities (expenses)
of the company
 
Is This Answer Correct ?    35 Yes 51 No
Gayathri
 
 
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 3
Salaries Outstanding Account refers salaries which are
already due but not paid.
 
Is This Answer Correct ?    43 Yes 2 No
Gayathri
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 4
salaries should be given to employees bcoz this is there
right and it can not be denied
 
Is This Answer Correct ?    11 Yes 29 No
Samuel
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 5
Salary outstanding account means: salay yet to pay ( for
this we rendered services already.
 
Is This Answer Correct ?    18 Yes 7 No
Jagan
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 6
"Outstanding" means "due for payment but not paid yet".
Thus, Salaries outstanding accounts represent the amount of
salary that the organization has to pay its employees,
which has not paid to them yet or which the employees has
not collected yet.

Here, the term due represents the account closing period.
For example, if an organization is paying salaries only on
4th of the following month and closing its books monthly,
then as on the last business day of every month, all the
salary for the particular month should be booked as
outstanding salary to disclose the accurate profit for the
month and the correct financial position of the company.

From Accounting perspective, while booking outstanding
salaries, we should be debiting "Employees' Salary Account"
and credit "Salaries Outstanding Account" (since we have
not paid it yet). At the time of actual payment of Salary,
we will reverse salary outstanding by debiting it and
crediting "Cash / Bank Account".

- Ma10kumar, Chennai
 
Is This Answer Correct ?    25 Yes 1 No
Ma10kumar
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 7
salaries outstanding a/c is a representative personal a/c.
The rule for this a/c according to traditional approach is
debit the debtor and credit the creditor.Salary outstanding
a/c represents those to whom the firm has to pay therefore
it is the liability of the firm.Now as per the modern
approach salary outstanding a/c will be credited since its a
liability and also they are creditors of the firm so the a/c
will be credited as per the traditional approach
 
Is This Answer Correct ?    14 Yes 2 No
Shivani Jain
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 8
Answer 1 (Kalpana) and 6 (Ma10kumar) is perfect.
But accounting perspective should be slightly different.
The actual accounting works as below;
1) Salary account (Expenses a/c) Dr
To O/S Salary a/c (Represents group of emply) Cr
Impact:
Salary expense, P/l account reduce the profit
O/S Salary B/S item (Increases Liability)

Laibility Asset

Profit (-)
O/S Sal (+)
Total Balanced Balanced

2) O/S Salary a/c Dr
To Mr.X (The employ who should ve received) Cr
Impact:
O/S Salary B/S item (Reduce Liability)
Mr. X, represents Accounts payable
Laibility Asset

O/S Sal (-)
Accounts Payable (+)
Total Balanced Balanced

3) Mr.X Dr
To Cash/Bank a/c Cr
Impact:
Mr. X, represents Accounts payable
Cash B/S account (Reduces)

Laibility Asset

Accounts Payable (-) Cash (-)
Total Balanced Balanced
 
Is This Answer Correct ?    10 Yes 1 No
Sandy
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 9
salaries outstanding a/c is a representative personal a/c.
The rule for this a/c according to traditional approach is
debit the debtor and credit the creditor.

Expenses (Salary A/c) Dr.
To, Outstanding / Payable Cr.
 
Is This Answer Correct ?    9 Yes 0 No
Tapas Ch Sarkar
 
  Re: What is meant by Salaries Outstanding Accounts?
Answer
# 10
end of the month: (Yet to pay)

Salary Account---------dr
to Salary payable a/c

When pay the salaries

salary payablr a/c----------dr
to bank A/c.
 
Is This Answer Correct ?    6 Yes 0 No
Muri
 

 
 
 
Other Accounting AllOther Interview Questions
 
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In Accounts payable process in BPO, how is the due date calculated? It should be Invoice date+ payment terms or Receipt date of invoice + payment terms? Accenture 2
How to treat the provision for bad debts which appear on credit side of the p&L A/c. Capital-IQ 6
What is RTGS   4
How can we calculate Goodwill of a firm? ICRA 2
which are coming under direct exp   4
Why we have to present first and second draft(Bill of Exchange) for bank negotiation.Why cant we present only One draft?   1
what is meant by inter trading Karvy 2
Fill in the blank Drawings capital   1
WHY PROFIT & LOSS A/C, WHY NOT PROFIT & LOSS A/C   1
What is the difference between Depreciation charged in P&L a/c and the Depreciation deducted from Assets' value in Balance Sheet, in an accounting period? Thomson-Reuters 2
Expand---------BRM   4
 
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