When an employee is given a cash advance to be recovered from future wages, this is recorded as a current asset of the business using a payroll advance journal entry.
January 3, 2017
Vacation entitlement which has been earned by an employee but has not been taken by the end of the accounting period, represents a liability to the business. The liability is recorded using a vacation accrual journal entry.
November 3, 2016 November 6, 2016
Take our payroll quiz questions and answers to check out your knowledge of payroll accounting used in double entry bookkeeping.
December 1, 2014 December 14, 2016
Unpaid wages are wages which have been earned by an employee during an accounting period but which remain unpaid at the end of the accounting period.
Under the accruals basis of accounting an adjusting entry needs to be made to provide for the unpaid wages based on the hours worked and the wage rate.
August 1, 2014 November 6, 2016
Payroll is the aggregate expenditure on wages and salaries incurred by a business in an accounting period. It can also refer to a listing of employees giving details of their pay.
May 20, 2013 November 6, 2016