BUSINESS ADMINISTRATION
BUSINESS ENVIRONMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Revenue
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Owner’s draw
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Expense
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Liability
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Detailed explanation-1: -Journal Entry For Paid Wages. Wages is a nominal account and because this is an expense of Business, as such, Wages account will be debited according to the rule of “Debit all expenses”. Cash account will be credited, as cash is going out of the business. (Being Wages paid).
Detailed explanation-2: -Wages paid to workers must be debited to account.
Detailed explanation-3: -Salaries and wages appearing in trial balance are expenses made on salaries and wages by the company during the year. They are to be shown in the debit side of profit and loss account as all expenses and losses are debited.
Detailed explanation-4: -Accounting for Wage Expenses It is a liability account. When a wage expense is recorded it is a debit to the wage expenses account, which requires a credit to the wages payable account for the same amount until the wage is paid to the worker.