Posts

Showing posts with the label Outstanding Wages Is A Representative Personal Account

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

Image
  Accrued Wages / Wages Payab le / Outstanding Wages is not a nominal account as it s h ows t h ose wages expense against w hich still the compa ny did not pay to workers during t he accou nting period. Outstanding wages is also not a real account as it is related wit h livi ng or natural persons. In fact, Outstanding wages is a Representative Personal Account as it s hows certai n workers to w hom the compa ny is liab le to pay for what they did to complete the project. So, the accou nt title “Outstanding Wages” is created to represent all of t he certai n workers to w hom the compa ny is liab le to pay for the period i n w hich wages expe nse incurred b ut not accrued. So, finally, we easily decide t hat outsta nding wages is a personal account and not a real or nominal account.