Journal Entry for Salary Paid through Cheque

When a company pays salaries to its employees through a cheque, it needs to record the transaction in its books of accounts. The following journal entry is made for salary paid through a cheque:

Debit: Salary Expense Account
Credit: Bank Account

Explanation:

The above journal entry has two accounts that are affected by the transaction: the Salary Expense Account and the Bank Account.

Debit: Salary Expense Account
The Salary Expense Account is debited because it is an expense account, and the company has incurred an expense by paying salaries to its employees.

Credit: Bank Account
The Bank Account is credited because the company has paid salaries through a cheque, and the amount has been debited from the bank account of the company.

Example:
Let's assume that ABC Company has paid a salary of $10,000 to its employees through a cheque. The following journal entry will be made:

Debit: Salary Expense Account = $10,000
Credit: Bank Account = $10,000

Conclusion:
In conclusion, when a company pays salaries to its employees through a cheque, it needs to record the transaction in its books of accounts using the journal entry mentioned above. It is essential to maintain accurate records of all transactions to prepare financial statements and make informed business decisions.

Salary paid through cheque the journal entry will be :
salary account dr
To bank account
salary is debit because cash is coming in salary account ( debit what comes in)
To bank because cash is going from bank that's why it will be credited from bank.( credit what goes out).