Forum

topBanner
First Previous - Page 1 of 1 - Next Last

Wages question

AllanAn
  • 5 posts
  • # 54972

Hi all, I've got a quick questions about a wages question

if the following question was laid to you what would your answer be (this is from the 2008 Orchard Bistro Computerised Paper):

post the following journals for aprils wages at the end of the month:

Nominal Heading DR CR
Gross wages 3487  
Employers NI 256  
PAYE Deductions   476
NI Deductions   389
Net Wages Payable   2878

what kind of accounts are each of these (liability, expense etc)
annepebo
  • Member PM.Dip
  • Practice Licence
  • 58 posts
  • # 54973

Your debit entries are expenses as they are the costs to the business.  The credit entries are liabilities as they are money that the business owes (to HMRC and to employees). Once paid of course the liability transactions are netted off to nil by the bank transations (credit bank, debit liability account) as they are no longer owed and no longer a liability.

Hope this helps

Edited at 05 Mar 2011 10:14 AM GMT
  • 160 posts
  • # 54978

Hi Allan,

Gross wages is an expense,employers ni aa expense,  paye deductions, ni deductions and net wages are liabilities,

Kind Regards

Paula Welsh 

  • Hello all,

    i just noticed we have a forum, just poking around the members area.  My name is Paula welsh and I have been a member since 2005, starting with Associate member and now a full member


  • Quote
  • 13 posts
  • # 69904

Hi All

Would like to clarify if the Payments to "Wages payable"

will this be post to N/C 7000-Gross wages or N/C 2220-Net wages?

Ashraf
  • Member PM.Dip
  • Practice Licence
  • 4 posts
  • # 69906

Your postings when you process payroll using Sage:

7000 - Gross wages /debit/
7006 - Employers NIC /debit/
2210 - PAYE /credit/
2211 - NIC /credit/
2220 - Net Wages /credit/

When you pay your liabilities:

1200 - Bank or 1230 - Petty cash /credit/
2210 - PAYE, 2211 - NIC, 2220 - Net Wages /debit/

After payment A/N with no 2210, 2211, 2220 should be with 0 balance. It means that you do not owe anything to HMRC or employees.

Hope it helps.

  • Dagmar Klongova
    YOUR business services (UK) Ltd


  • Quote
  • 698 posts
  • # 69913

Hi Ashraf

To clarify wages payable are the net wages payable to the employee so they would be posted to 2220.

I hope this helps

Best regards
Stuart

  • Forum Moderator, South East & Greater London Regional Chairman

  • Quote
  • 13 posts
  • # 69926


Thanks Stu


Edited at 30 Mar 2011 02:39 PM GMT
  • 13 posts
  • # 69927

finally found how to do this



Edited at 30 Mar 2011 05:51 PM GMT

Edited at 30 Mar 2011 05:52 PM GMT
  • 698 posts
  • # 69932

Hi Ashraf

Where is this question coming from Ashraf is it an assignment, mock exam, or assesment.

Cheers
Stuart

  • Forum Moderator, South East & Greater London Regional Chairman

  • Quote
nckbooks
  • 328 posts
  • # 69955

 Hi Stuart,

To reply to your question, this is one of the task from ICB mock exam.


Regards,

Nathaliexxx

  • Provide bookkeeping and virtual accountancy assistance service in English and French @nckaccountancy.
    West Essex Twitter:http://nckaccountancy.co.uk
    E-mail: info@nckaccountancy.co.uk

  • Quote
First Previous - Page 1 of 1 - Next Last
bottomBanner
loading