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How to account for unpaid wages?

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Question ajoutée par Mohamed Hakeem Meerashahib , Branch Manager , Sri Lanka State Trading (General) Corporation
Date de publication: 2016/03/02
محمد صافي
par محمد صافي , Financial Manager , Toledo Hotel

Db.  Expense ****

  Cr.    Acrual Expense ****

Samuel Raju Matta
par Samuel Raju Matta , Admin Manager , Maxprocapital Ltd

Under the accrual basis of accounting, unpaid wages that have been earned by employees should be entered as 1) Wages Expense and 2) Wages Payable or Accrued Wages Payable. Wages Expense is an income statement account. Wages Payable is a current liability account that is reported on the balance sheet.

Muhammad Aashif
par Muhammad Aashif , Accounts Officer/Senior Accountant , LC Trading Company

In P&L it could be reflect as an expense or Accrued Wages Account.

While in B/S as an Liablaity so for.

 

Jowell Acenas
par Jowell Acenas , General Accountant , Hashoo Group Ltd.

Unpaid wages should be accounted as follows:

(1) Wages Expense and

(2) Wages Payable or accrued wages payable. 

Wages Expenses is an expense account on the statement of Income and Expenses while Wages Payable/Accrued Wages payable is a current liability account on the Balance Sheet. This is under the accrual basis of accounting.

khaled al eqoul
par khaled al eqoul , team leader & acting section manager , abu dhabi education council

the unpaid days will calculated as per employee contract and the company policies in general way unpaid day will calculate as below

monthly salary/ 3o days*no. unpaid days

Billy Rey Dela Cruz
par Billy Rey Dela Cruz , ACCOUNTANT , SAEED RADDAD AL-ZAHRANI CORPORATION

Unpaid wages should be accounted for as a liability. And recorded using wages payable account / Accrued expense.

Kumar Harpalani
par Kumar Harpalani , GROUP PAYROLL MANAGER AND ACCOUNT MANAGER , AFRICAN COMMODITIES DMCC

Unpaid wages that have been earned by employees should be entered as

1) Wages Expense 

2) Wages Payable or Accrued Wages Payable.

 Wages Payable is a current liability account that is reported on the balance sheet

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