What type of account is the wages control account?
Urthona26
Registered Posts: 4
I can't figure out which of the five types of account it is - asset, liability, income, expense or capital. I have a feeling the answer is going to be 'none', which would really rustle my jimmies tbh.
0
Comments
-
It would be a liability account since what's credited there is what the business owes to its employees, HMRC, pension schemes etc. Payroll expenses such as Gross Pay and NI would be posted to the debit side since these are expenses to the business.
When it comes time to pay the wages, the account will be debited and the bank credited. This should reconcile to what was due in that period.
It's similar to the Purchase Ledger Control Account in terms of postings, just a few more expense accounts involved.Matthew Dearlove MAAT
Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.0 -
That doesn't make sense to me. If it's a liability account, entries on the debit side are assets or reductions in liability, not expense.0
-
Sorry, I meant the debits are posted to their respective expense accounts. For example:
DR Gross Pay
CR Wages Control Account
DR Employer's NI
CR Wages Control Account.
I shouldn't be answering questions so late at night!Matthew Dearlove MAAT
Currently on CIMA Management Level. Passed P2, F2 and E2. Preparing for November 19 MCS.0 -
But what about when wages are then transferred to accounts according to function. For example, wages to production being debited to the production account, wages for production overheads being debited to the production overheads account?0
-
You just spread the cost between the accounts
Dr Production wages ac 600
Dr Admin wages ac 400
Cr Wages Control ac 1000AAT Level 2&3 - 2016
AAT Level 4 - 2017
Personal Tax, Business Tax and External Auditing
ACA/CTA -
Certificate Level - Jan 20190
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 18.9K For AAT students
- 259 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 37 AAT Level 3 Diploma in Accounting
- 64 AAT Level 4 Diploma in Professional Accounting
- 8.9K For accounting professionals
- 23 coronavirus (Covid-19)
- 274 VAT
- 92 Software
- 274 Tax
- 137 Bookkeeping
- 7.3K General accounting discussion
- 193 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 352 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 590 Job postings
- 17 Who can benefit from AAT?
- 36 Where can AAT take me?
- 44 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 65 AAT membership