Q.In a Journal Entry, Paid salary by cheque of ₹ 3,000 is credited to :

Paid salary by cheque: Salary A/c is debited and Bank A/c is credited — option (a).

Applying the modern rules of debit and credit:

• Salary A/c is an expense — expenses are debited when incurred, so Salary A/c Dr. ₹3,000.
• Payment is by cheque, so the money leaves the bank, not the cash box. Bank A/c is an asset; an asset that decreases is credited, so To Bank A/c ₹3,000.

Journal entry:

| Particulars | L.F. | Debit (₹) | Credit (₹) |

|---|---|---|---| …