Journal Entry for Salary Paid to Mohan

When a company pays a salary to an employee, it is recorded in the accounting system as a transaction. The journal entry for this transaction is as follows:

Date: [Date of salary payment]

Particulars: Debit Salary Expense

Credit: Cash/Bank Account

Explanation:

Debit Salary Expense: Whenever a company pays a salary to an employee, it is considered an expense for the company. Therefore, the salary expense account is debited.

Credit Cash/Bank Account: The salary paid to the employee is paid through cash or bank. Therefore, the cash/bank account is credited.

Example:

On 1st January 2022, ABC Company paid a salary of $5000 to Mohan.

Journal Entry:

Date: 1st January 2022

Particulars: Debit Salary Expense $5000

Credit: Cash/Bank Account $5000

Explanation:

Debit Salary Expense: ABC Company debits the salary expense account with $5000 as it is an expense for the company.

Credit Cash/Bank Account: The company credits the cash/bank account with $5000 as it is the amount paid to Mohan.

In conclusion, the journal entry for salary paid to Mohan is a simple transaction that records the salary expense and cash/bank account.

Salary A/c Dr.
To cash A/c



Being salary paid to mohan in cash.