What are Accrued Wages - Definition - Meaning - Example
Accrued Wages means the amount of wages earned by the workers but the payment for the working hours done still has not yet been received from the company. In a factory, workers performed many projects on daily basis, so these are paid at the end of the day when they done their work or they are paid on monthly basis. Such amount of wages due from the company is called Accrued Wages. Accrued Wages are examples of Accrued Expenses . You Can Also Read Out, “ What Are Accrued Salaries ” For Example, workers done the task for a project during the month, but the payment is still due from company, then it is a Current Liability of the company to pay to the workers on the next month as agreed upon. The following Accrued Wages Journal Entry is Passed accordi ng to Accrual Basis of Accounting : Wages Expense a/c XXX ...