Wages Expense & Accrued Wages T Account
Wages Expense T Account and Accrued Wages T Account are prepared to record Transactions related to these two accounting terms.
When Wages paid for Cash Rs. 8000, then following Journal Entry is posted to the Wages Expense Account or Ledger as shown below:
Wages Expense Account 8000
Cash Account 8000
(Wages Paid For Cash)
Wages Expense Account
For the Period
Rs. Rs.
Cash 8000
When Wages Rs. 8000 Accrued or Payable for the current month, then following entry is posted to the Ledgers of Wages Expense Account And Accrued Wages Account:
Wages Expense Account 8000
Accrued Wages Account 8000
(Wages Accrued for the Month)
Wages Expense Account
For the Period
Rs. Rs.
Accrued Wages 8000
Accrued Wages Account
For the Period
Rs. Rs.
Wages Expense 8000
Balance c/d 8000
The closing balance of Accrued Wages is transferred to Balance Sheet as a Current Liability while Wages Expense is closed to Income Statement as it is a Temporary Account (Operating Expense).
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