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What is the difference between "Wages & Salaries", How do your treat these expenses in Journal?

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Question ajoutée par Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union
Date de publication: 2015/08/11
Utilisateur supprimé
par Utilisateur supprimé

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

Sayed Rubab Sayed
par Sayed Rubab Sayed , Finance Officer , The Next

Mr Richard Appiah has given the answer right.....................

Badar Khan
par Badar Khan , Accounts cum administrative assistant , Al Qassimia Drivng Training Centre.Sharjah

wages is used when employees are paid hourly or weekly rate..

salaries is used when employees are paid  at the end of the month

Ahmer Zamir
par Ahmer Zamir , Consultant , Saleem Associates & Co

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.

 

أرشد حسين
par أرشد حسين , Payroll Accountant , RAINBOW CP COATING

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. 

Imdad Hussain Rajput
par Imdad Hussain Rajput , Assistant Sales Manager , Forego

Wages are paid daily or hourly and salary is paid monthly

Gyasuddin Ahamad Ansari
par Gyasuddin Ahamad Ansari , Accountant , Shiv Shakti Dall Mill Pvt.Ltd.

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.

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