Wage Control Account

hi,

I am taking my CJBS exam soon, and I don't understand the wage accounts/ control accounts.

I'm doing the practice assessments on the aat website and it gave me a list of payroll transactions.

Gross Wages
Income tax
employer NI
employee NI
employee pension contributions

then it says show the journal entries needed in the general ledger to record the wage expense

does anyone know?

Thanks

Comments

  • JoshJ1992JoshJ1992 Posts: 75Registered
    I'm also about to take the same exam and i've only recently got my head around this.

    I believe that for the wage expense (double check this in your text book in case I'm wrong), take the gross wage and add the amount for employers NI (this will give you the amount that the business will pay in total. Debit that amount in your wage expenses account and credit your wages control account.

    hope that helps.
  • DDOROURKE123DDOROURKE123 Posts: 62Registered
    hi,

    I checked the answers which I didn't know you could do, and the journal entries needed in the general ledger to record the wage expense

    its wage control account and wage expense account (you're right where you said add the gross wages and employers ni)

    and for the second questions which I didn't include in my first post is

    What journal entries are needed in the general ledger to record wages paid to employees?

    this one its wage control account and bank and their both 14018 because you have to add and minus the Gross Wages, Income tax, employer NI, employee NI, employee pension contributions

    gross wages + employers NI = ....
    then add the rest up and minus it from the above figure

    thanks for responding, when you taking your test? and have you tried the sample assessments on the aat website?

  • JoshJ1992JoshJ1992 Posts: 75Registered
    Hi, am taking my test at the weekend. I have taken the sample assessments and find them useful. Good luck with your test.
  • DDOROURKE123DDOROURKE123 Posts: 62Registered
    did you pass your exam JoshJ1998?
    Morris1708
  • JoshJ1992JoshJ1992 Posts: 75Registered
    Yes I passed :smile:
    Morris1708
  • DDOROURKE123DDOROURKE123 Posts: 62Registered
    did you take the green light tests as well?

    I can do the sample assessments but I getting like 70% on the green light test
    Morris1708
  • DDOROURKE123DDOROURKE123 Posts: 62Registered
    green light test on the aat website ^^^
    Morris1708
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