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Wages Control A/c

Acorn2oak
  • 167 posts
  • # 73003

Hi

Have been trying to get my head around the entries in the wages control account - can somebody please explain how this works.

Many thanks

Acorn

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Mad Liz
  • 145 posts
  • # 73022

When you run the payroll you make the following journal:

Description Debit Credit
Gross Wages 5000.00  
Employer's NI   608.71  
PAYE / NI Control Account   2157.53
Wages Control Account   3451.18
  5608.71 5608.71

When you pay the salaries you do the following journal:

Description Debit Credit
Wages Control Account 3451.18  
Bank Account   3451.18
  3451.18 3451.18

After this the Wages Control Account will show a nil balance.  Usually a credit balance on the Wages Control Account will mean that the salaries have not been paid (or that the bank entries have not have not been posted.  A debit balance will mean that the Salaries journal has not been posted.

HTH.

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Acorn2oak
  • 167 posts
  • # 73036

Thanks Liz that is really helpful

Regards

Acorn

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