Answer:
c. A debit to Salaries Payable and a credit to Cash.
Explanation:
As on December 31, entry to record the expense of Salaries which is accrued and not paid is
Salary A/c Dr.
To Salaries Payable
Now on the closing date, of previous year there is a liability outstanding of Salary Payable.
In the next year on 5th January the salary outstanding in opening balance sheet is paid.
For this, the payment will be made and accordingly, cash will be reduced.
Accordingly liability will be reduced for this, liability will be debited.
Therefore, correct option is
c. A debit to Salaries Payable and a credit to Cash.