Wages & salaries


how to account salary against the payslip,because we can’t select in pend money - Expenses account > Wages & salaries but it is available in chart of account

When you create a payslip, Wages & salaries is debited. That is an expense account. To balance the transaction, as required in double-entry accounting, a liability is added to Employee clearing account. This does not involve the movement of money. When you pay the employee, allocate the Spend money transaction to Employee clearing account and the specific employee’s subaccount. This will reduce your cash account as well as the Employee clearing account.

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