What Account is Salary outstanding

What Account is Salary outstanding? Is it real, personnel or nominal account?
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naveen hp

  • Jul 12th, 2007
 

Salary outstanding is an administrative expense or rather an Indirect expense. If the salary outstanding is related to previous year then it shall be debited to profit and loss account as an expense and the amount related to current year shall be shown as current liabilities under the liabilities side of the balance sheet.

As far as it is real, personnel or nominal is concerned, it is nominal account as the golden rule of accounting for nominal is debit all expenses and losses and credit all incomes and gains.

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karlakevin

  • Sep 13th, 2007
 


Outstanding Salary A/c is a Representative Personal Account as it represents a group of people to whom some amount of salary is payable. Similarly other outstanding and prepaid expenses also fall under the category of representative personal accounts.

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mmali1979

  • Mar 16th, 2010
 

In simple words its a personal account. Any expenses transaction related to cash/bank should be shown in debit side of Profit and loss account. If a particular employee salary not paid as  per monthly base and to be release in future known as Outstanding Salary. 

Outstanding salary treated in Laibility side of balance sheet.

Journal Entries to be passed.

Outstanding Salary A/c Dr.
Salary A/c  Cr.

Salary A/C Dr.
Cash/Bank A/c Cr.

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KISHORE

  • Apr 4th, 2012
 

This is not nominal account since it is not an expense and it is an Personal account (Representative personal).As that reason only we show it under current liabilities section of BS.

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viji

  • Apr 5th, 2012
 

It is a representative personal a/c. it has to be shown in the liability side of b/s under current liability.

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Anith savio

  • Apr 17th, 2012
 

o/s salary is a nominal account.because according to a business salary is an expense and its an income for employee...Nominal account means debit all incomes & gains and credit all expenses & losses...

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DINESH KUMAR LAHARA

  • Apr 19th, 2012
 

Outstanding Salary A/C Dr..................
To Salary A/C

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Nikhil Nigam

  • May 8th, 2012
 

o/s salary a/c is personal a/c and the entry will be

o/s salary a/c dr.
salary a/c

by this entry we transfer the salary a/c balance into o/s salary a/c.

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pushpa c bonal

  • Jun 7th, 2012
 

Outstanding salary is representative personal account but salary is a nominal account since it represent expenditure. This is point wort noting since lot of confusion exists among various people in this regards .
salary a/c dr.
to outstanding a/c
(salary for outstanding)

This is called "adjusting entry" which is normally passed at the end o the year to take into account incomes and exp not received /paid but pertain to current year in tune with the accrual matching concept.

Raj Kumar (R.S)

  • Mar 24th, 2014
 

Salary a/c Dr.
To Outstanding salary a/c

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Shummy Antony

  • Jun 2nd, 2014
 

Anith,
The rule of Nominal Account is "Debit all Expenses and Losses, and Credit all Income and Gain"

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sumit

  • Jul 10th, 2015
 

Salary a/c dr
To outstanding salary

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Ashwin

  • Jul 16th, 2015
 

It is a personal account. Outstanding salary is a representative personal account.

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natesh

  • Jul 25th, 2015
 

Current Liabilities

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Manju

  • May 8th, 2016
 

Since salary is an expense to the company, it lies in the nominal accounting category. according to nominal accounting rule debit all all expenses & loss and credit all incomes & gains

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manjunaik025

  • May 9th, 2016
 

Think of business perspective. You spend (expense) something (as salary) in the business expecting something in return of (Profit). As per as business point of view is concerned it is an nominal account.. Other side it is an representative personal A/c since salary A/c individuals A/c.. one cannot say it is not a nominal account.

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Nithya

  • May 25th, 2016
 

Salary outstanding is not an nominal account. It is a personal account.
Nominal account prefixed or suffixed with pre-paid or pre-received or outstanding is a personal account. I hope this answer is useful.

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Arun Gupta

  • Jun 2nd, 2016
 

Nominal A/c

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Esha

  • Jun 7th, 2016
 

Outstanding salary is a representative personal A/c. And the journal entry is
Outstanding salary A/c ....dr To Salary A/c

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Ashish

  • Sep 7th, 2016
 

How to calculate if salary is paid for 11 month and there is a outstanding salary for one month?

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Shruti

  • Sep 12th, 2016
 

It will go under liability and capital account

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Satvik Batchu

  • Sep 27th, 2016
 

Exactly it can be said as "REPRESENTATIVE PERSONAL ACCOUNT"

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Reddy

  • Nov 11th, 2016
 

O/S Expenses or Prepaid Expenses (i.e Salary, Rent, etc) A/C is personal A/C. All nominal accounts are closed at the end of each year, whereas personal accounts are balanced and transfer the balance to Balance Sheet as Current Liability or Current Asset.

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swamy phirangi

  • Nov 17th, 2016
 

Salary a/c dr.
To Outstanding expenses

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Christine

  • May 28th, 2017
 

As its a current liability it would go to the real account. Anything outstanding is considered stored with you like an asset which you cant utilize as its a liability so asset and liability related a/c would be reported in real account

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naman bagga

  • Dec 7th, 2017
 

o/s expense is an expense which is still to be paid like unpaid rent, unpaid salary and many more. It is a type of liability actually. It is a expense in which we have used the service or taken the service but the amount is not paid or given.

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Khushi

  • Dec 11th, 2018
 

How to calculate outstanding salary when it is for only 1 month

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