Journal Entry for Paid Salary and Outstanding Salary

1. Paid Salary of Rs. 450
- When the company pays the salary of Rs. 450 to its employees, the journal entry would be:
Salary Expense A/C Debit Rs. 450
Bank A/C Credit Rs. 450
- In this entry, the Salary Expense account is debited as it is an expense for the company, and the bank account is credited as the company is making the payment from its bank account.

2. Outstanding Salary of Rs. 100
- When there is an outstanding salary of Rs. 100 that has not been paid yet, the journal entry would be:
Salary Expense A/C Debit Rs. 100
Outstanding Salary A/C Credit Rs. 100
- In this entry, the Salary Expense account is debited to recognize the expense that has been incurred but not yet paid, and the Outstanding Salary account is credited to reflect the liability that the company owes to its employees.

Explanation:
- The payment of Rs. 450 for the salaries already paid is recorded as an expense in the books of accounts.
- The outstanding salary of Rs. 100 is recognized as a liability as it is an amount owed to the employees but not yet paid.
- Both entries ensure that the company's financial statements accurately reflect its expenses and liabilities related to employee salaries.