How to record salary?
Harshal Katre avatar
Written by Harshal Katre
Updated over a week ago

A salary is a form of periodic payment from an employer to an employee, which may be specified in an employment contract.

How to record Salary?

In ProfitBooks this can be done as a first step, create the Salary account. Go to Accounting > Chart of Accounts > New Account

Salary account

Fill in all the details:
Enter the account name - Provide the name of new account head in Name
Select account group from the drop down - Select the corresponding group for new account head in Group drop down.
Enter the effective date - Record date when Account is created.
Opening balance- NILL (there is no need for opening balance as it is an expense account) .

Click on save and its Done.

Second step is for recording of Salary, for that user have to pass journal entries. To pass journal entry follow the below-mentioned steps:

Step 1: Go to Accounting > Journal Entries, click on "Add New Record".
Step 2: Fill in the details like Date, Under project, if any.
Step 3: Under From Account select Salary account and debit it with the amount and select cash/bank account and credit it with the same amount.
Step 4: Fill the description box for eg. "Being salary paid" and
Step 5: Click on save and it's done.

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