BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Salaries and wages are expenses incurred by the business during an accounting period. Therefore, it has to be shown on the debit side of the profit and loss account. Also read: MCQs on Trial Balance.

Detailed explanation-2: -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.

Detailed explanation-3: -The debit side of it will feature entries from accounts like assets, drawings accounts, expense accounts, cash balance, bank balance, losses, purchases, and sundry debtors, among others.

Detailed explanation-4: -As mentioned earlier, this outstanding expense is a type of personal account with a credit balance and this is treated as a liability for the business. This is recorded on the liability side of the balance sheet of a business.

Detailed explanation-5: -When looking at the trial balance meaning, it’s helpful to define what would go into each side of the equation. Debit balances include asset and expense accounts. Credit balances include liabilities, capital, and income accounts.