Question

Answer in one Sentence only.

Where is the balance of Salaries A/c transferred at the end of the year?

Answer 1

Salaries A/c is a nominal account because all the expenses and incomes of a firm are classified as nominal accounts. Balances of nominal accounts are transferred to the Trading and Profit & Loss A/c of the firm at the end of the year. Thus, the balances of Salaries A/c being an indirect expense is transferred to the debit side of Profit and Loss A/c at the end of the year.