Likewise, the company will also need to make another journal entry for salaries paid at the beginning of the month to account for the cash outflow from the company. And in this case, even though, the salaries have not been paid out at the end of the month yet, the employees have already been working for one month which means that the expense has already occurred. This is due to, under the accrual basis of accounting, the company is required to record the expenses when they occur regardless of whether they have been paid for yet or not. However, the company still needs to make the journal entry for the salaries expense in the form of accrued expense if it follows the accrual basis of accounting. If this is the case, the cash payment for the salaries will not flow out from the company yet at the end of the month of work. However, some companies may have the policy to pay the salaries to its employees at the beginning of next month of the work instead. In this case, it needs to make the journal entry for salaries paid at the end of the month to account for the expense that has occurred as well as to account for the cash outflow at the end of the month as a result of salaries paid. In business, the company usually makes the salary payment to its employees at the end of the month in order to pay for the works that the employees have done. Journal Entry for Salaries Paid Introduction
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