I am new here and dont have strong knowledge on Accounting as I am Civil Engineer. I am little confuse about Employee salary. As per Guide it should goes to Employee clearing account which under Less Other liabilities.
As per my knowledge salary should go to under expense account. Please hep me to come out from this situation.
It is a liability because you owe the employee money. The liability will become an expense when you actually pay the employee. Remember, double-entry accounting requires balancing entries in two different accounts for every transaction. Without a knowledge of double-entry accounting, you will not be able to use Manager effectively. You might like to begin at http://www.accountingcoach.com. That site is free and excellent. There are other good sites, too.
Thanks for reply. Can you pls advice me how Can I completed Employee salary. Say I have one employees and paid him salary for last month $2000. What will be entry and under which account. Please tell in details.
Thanks in advanced
Read the Employees and Payslips topics in the Guides.