Unit 30 - Stuck !
stevie_vee
Registered Posts: 1 New contributor 🐸
Hey everyone, my first post on here
I am doing a home study AAT course, from scratch and have been progressing along really well.
However i have hit a brick wall. After grasping the double entry and dr and cr i then came across the Accounting for Payroll Payments in Chapter 13. Now i am really confused.
four lots of double entries to be made in three main accounts (gross wage, wages expense, PAYE/NIC creditor)
For some reason i cant get my head around this and just wanted to find out if anyone has any other resources on this topic where i can try and get a different perspective and hence a better understanding.
I could try and memorise this but i would of course prefer to try and understand it.
thanks for any help and advise you can offer.
Steve
I am doing a home study AAT course, from scratch and have been progressing along really well.
However i have hit a brick wall. After grasping the double entry and dr and cr i then came across the Accounting for Payroll Payments in Chapter 13. Now i am really confused.
four lots of double entries to be made in three main accounts (gross wage, wages expense, PAYE/NIC creditor)
For some reason i cant get my head around this and just wanted to find out if anyone has any other resources on this topic where i can try and get a different perspective and hence a better understanding.
I could try and memorise this but i would of course prefer to try and understand it.
thanks for any help and advise you can offer.
Steve
0
Comments
-
If you can follow the logic of the following made up figures,
Gross Pay = £ 100, PAYE Tax £ 15, Employee NI £ 5, Employer NI £ 10
Net Pay = £ 80
Journals as follows: -
Dr Wages & NI Expense £ 100
Cr Wages Control A/c £ 100
Being Gross Wage
Dr Wages & NI Expense £ 10
Cr Wages Control £ 10
Being Employer's NI
Dr Wages Control £ 15
Cr PAYE/NI Liability £ 15
Being PAYE Income Tax
Dr Wages Control £ 15
Cr PAYE/NI Liability £ 15
Being Total NIC (Employers + Employee)
Dr Wages Control £ 80
Cr Bank £ 80
Being settlement of Net Wages
Posting the above should reconcile the Wages Control Account, and leave a credit balance of £ 30 on PAYE/NI Account - being the liabilitly owed to HMRC. In the Profit & Loss Account should be recorded the Gross Wage + Employers Ni - being the expense to the business.0
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