Control Accounts

sarva
sarva Registered Posts: 13 New contributor 🐸
I need to distinguish between salaries control account and salaries expence account. If anybody recomend a book I can gothrough it.
Thanks
Sarva

Comments

  • sheelagh
    sheelagh Registered Posts: 133 Dedicated contributor 🦉
    Payroll

    In my opinion Frank Wood's Bookkeeping and Accounts is a good bookkeeping manual.

    In the meantime, I will outline the concept

    The payroll expenses account is used to record the costs
    - ie, gross wages and employers NI. The balance of this account will be an accumulation of wages costs in the accounting period.The expenses account is in the profit and loss section of the chart of accounts, in the direct costs and/or overheads section.
    The payroll liabilities account is used to record the liabilities to HMRC and to the employees. The balance of this account will change, according to how much is owed to HMRC and to employees, at any point in time. Payroll liabilities accounts are in the balance sheet section of the chart of accounts, in the Other Creditors section.


    A standard payroll journal will be
    DR Gross wages
    DR Employers NI
    CR Net Wages
    CR PAYE control ( employers NI, employees NI and Tax deducted)

    When wages are paid to employees, and PAYE paid to HMRC, the double entry will be
    CR Bank
    DR Net wages / PAYE control
    Thus the balance sheet accounts are reduced to nil.

    I hope this helps
  • sarva
    sarva Registered Posts: 13 New contributor 🐸
    Thank You for your reply Sheelagh.I got the basic from you.
    Sarva
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