What is an Outstanding Salary?

by Shipra

outstanding salaries

Q: What is the definition of outstanding salary??

Outstanding salaries are salaries that are due and have not yet been paid.

For example, the staff of ABC Corporation have worked for the month of April. It is now the 3rd of May and they still have not been paid, so the salaries are "payable" or "owing" or "outstanding" (all the same thing).

The salaries themselves are an expense.

But when salaries are outstanding, meaning they are owing, we also record a liability (debt) account called salaries payable.

"Salaries outstanding" or "salaries owing" or "salaries payable" is known as an accrued expense and falls under the category of current liabilities in our records (meaning a short-term debt).

Hope that helps!

Michael Celender
Founder of Accounting Basics for Students

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Comments for What is an Outstanding Salary?

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Outstanding salary - Representative Personal account
by: Anonymous

Outstanding salary will come under Personal account. Personal accounts are subdivided into Natural account, Artificial account and Representative account. Outstanding salary comes under Representative account.

An account which represents a particular person or group of person is a representative account.

Does outstanding Salary comes under real,personal or nominal
by: Sara

What is outstanding salary - real, personal or nominal?

by: Anonymous

Why does outstanding salary come under expense?

No it does not come under expense, it is a liability.

- Michael

Question on Outstanding Salary
by: karthik

Which account does the "outstanding salary" belong to???

You can call the account "Salaries Payable" or "Accrued Salaries" or "Outstanding Salaries." All of these mean the same thing. It is a liability account.

Michael Celender

Outstanding Salary Description
by: urmila

If workers of an organisation give the organisation the service they need but for two or more months and the organisation did not pay the workers for their services is called ''outstanding salary.''

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