Outstanding Wages Is A Nominal Account Or A Real Account Or A Personal Account

 

Accrued Wages / Wages Payable / Outstanding Wages is not a nominal account as it shows those wages expense against which still the company did not pay to workers during the accounting period.

Outstanding wages is also not a real account as it is related with living or natural persons.

In fact, Outstanding wages is a Representative Personal Account as it shows certain workers to whom the company is liable to pay for what they did to complete the project. So, the account title “Outstanding Wages” is created to represent all of the certain workers to whom the company is liable to pay for the period in which wages expense incurred but not accrued.

So, finally, we easily decide that outstanding wages is a personal account and not a real or nominal account.