The Entry To Adjust The Accounts For Wages Accrued At The End of The Accounting Period Is

The adjusting entry recorded to adjust the amount of Wages Accrued / Wages Outstanding / Wages Payable for the period is shown below:

                                Wages Expense a/c   XXX

 

                                                                Accrued Wages a/c XXX

 

                                                     (Wages Accrued for the Period)

 

As the company received services from workers but still the amount of Wages Expense Account is not paid to workers, so it is a current liability for the company’s business to pay to workers for the services rendered by them to the company during the period.

For example, Accrued Wages of Rs. 20000 is a liability for the company to pay to workers for what they did for the specified project during the month.

Accrued wages is shown on balance sheet until it is fully paid by the company to workers.