Interested to Buy Any Domain ? << Click Here >> for more details...
What is meant by Salaries Outstanding Accounts?
- 13 Answers
- 45782 Views
- HP, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / a.r. kalpana
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 ? | 128 Yes | 15 No |
Answer / ma10kumar
"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 ? | 33 Yes | 3 No |
Answer / shivani jain
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 ? | 17 Yes | 4 No |
Answer / sandy
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 ? | 13 Yes | 3 No |
Answer / jagan
Salary outstanding account means: salay yet to pay ( for
this we rendered services already.
| Is This Answer Correct ? | 19 Yes | 10 No |
Answer / tapas ch sarkar
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 ? | 10 Yes | 1 No |
Answer / muri
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 ? | 8 Yes | 1 No |
Answer / ankur
o/s salary means a salary which is not given yet but has to
be given . This is a libility for the company which is not
paid a salary. this is a DR item which is add with salary
entry in p&l a/c . as well as go into current libility in
companies b/s
| Is This Answer Correct ? | 2 Yes | 1 No |
Answer / norbu tshering
it is payment due but yet to pay. it represent the persomal
account.
| Is This Answer Correct ? | 2 Yes | 1 No |
what is the difference between hirepurchase and lease?
A sample book on interviews is ready for free circulation with 7 chapters i.e Journal entries helpful for various occassions,Terminology,Abbreviations,Test your terminology,Multiple answers, Fill in blanks and Income tax send your requisition for Free Book Immediately to satyaki_raju@yahoo.co.in
difference between financial accounting and cost accounting
Expand-------ANC
Purchase book is a ----------journal
what is golden rules of accounts
Distinguish capital and Revenue receipts
What is pre-paid amount? What is post-paid amount? Explain received in advance? Explain paid in advance?
how Mis reports are used?n why it is used ? explain
EXPAND___________MIS
difference between lease financing and hire purchase
What is capital expenditure?
Audit 
