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Even though the terms are sometimes used interchangeably, wages usually refer to hourly pay, whereas salaries refer to annual pay. Wages are calculated by counting the number of hours worked and multiplying it by an hourly rate, while salaries are calculated annually and divided by the number of payments received.
When paid we debit the account titled wages and salaries expense and credit cash or bank which ever is used in making such payment.
wages means the daily paid up to employee and salari means weekly or monthly payment to employee
Wages are paid daily and salaries are paid monthly mostly
Mr Richard Appiah has given the answer right.....................
wages is used when employees are paid hourly or weekly rate..
salaries is used when employees are paid at the end of the month
The wages is paid as per hourly or per unit rate ,it is not a monthly charges over the income statement and it is treated as a product cost and includes as a direct variable cost of the unit cost .i.e wages to direct labors who directly involves in production process.
Salaries is a Period Cost and it doesn't include in the product cost or Unit Cost so that monthly charge over the income Statement .i.e salaries of head office employees or executives etc.
The essential difference between a salary and wages is that a salaried person is paid a fixed amount per pay period and a wage earner is paid by the hour.
Debit account should be Wages & Salaries Expenses and credit account will be Cash or Bank which ever mode of payment.
Wages are paid daily or hourly and salary is paid monthly
wages is direct expenses and it is debited in trading a/c. of financial statemet.so it's treatment in jounal is. debit.trading a/c.& credit. wages and salary is indirect expenses and it is debited in Profit/Loss a/c of financial statement .so it' entry in journal is debit. profit/loss a/c. credit.salary a/c.
