wages control account

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
If you have a left over balance on your wages control account what will it be for?

If that makes any sense?!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:wages control account

    Hi

    Any balance on this control account should represent money that is due to an employer but that has not been paid.

    Neil
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:wages control account

    Ahhh right, that makes a bit more sense now. Would this money then be put in another account or just stay in the control account?
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:wages control account

    Hi

    Neither really. The control account balance is usually only there until the value is paid over to the employee.

    Basically the wages joural would have debited the gross cost to the relevant expense account/s and then credit deductions and net value to their repsetive control accounts. These would then remain in credit until the values were paid. Any credit balance left would be unpaid items, a debit balance would be items paid but not yet posted into the account (i,e, wages paid before the journal has been posted).

    Neil

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