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).