When payroll journal entries are posted to the general ledger, the Cash account is decreased by a credit of $29,960 (the difference between $40,500 and $10,540). This is because the total earnings of $40,500 are recorded as a debit to an expense account (such as Salaries and Wages Expense), while the total withholdings and deductions of $10,540 are recorded as a credit to a liability account (such as Payroll Taxes Payable). The net amount of $29,960 ($40,500 - $10,540) represents the actual cash paid out by the company for payroll expenses