Journal entry of outstanding wages is
Wages a/c dr
TO O/s wages a/c
In the Above journal entry why outstanding wages has to be
credited ? and o/s wages comes under which account, and why
(Personal, Real, Nominal)
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Answer / bhaskar unnikrishnan
Outstanding Wages has to be credited because it is
liability. (Debit all asset, Credit all liabilities). When
outstanding wages paid:
O/s Wages Debit
Cash Credit.
It will gradually reduce O/S Wages Balance.
| Is This Answer Correct ? | 38 Yes | 8 No |
Answer / debasmita
outstanding wages a/c is under personal a/c and wages a/c is
under nominal a/c.so debit all expences and losses.where in
personal a/c cr is the reciever.
| Is This Answer Correct ? | 27 Yes | 19 No |
Answer / guest
as wages is expenditure for the company, nominal
account because it is a expenditure for the
company
| Is This Answer Correct ? | 10 Yes | 3 No |
Answer / sanjoy
Wage es is the nominal account ,when wage increases it become debit , similar when liability increased it become credit , that why outstanding (liability) credit
| Is This Answer Correct ? | 8 Yes | 1 No |
Answer / krishna prasad
wages is nominal A/c.outstanding wages is representative A/c.The employees gives services to company so giver is credited as per personal A/c until paid wages
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / muhammed ansar
Generally only expenses are classified under three heads according to their nature. However; outstanding wages is not an expense . It is a liability raised out of the expense of wages. So it can't be classified as expense. It is based on the expense of wages which falls under nominal account .
| Is This Answer Correct ? | 0 Yes | 0 No |
Answer / laxman
wages is an exp for the companies. so outstanding wages
means co. need to pay wages for the employees for their
contribution . o/s wages is an indirect exp and the journal
entry should be like this
wages a/c ----dr (EXP FOR THE ORG)
To o/s wages (INCOME FOR THE EMP)
THE ENTRY SHOULD FOLLOW THE RULE OF NOMINAL ACCOUNT.
| Is This Answer Correct ? | 2 Yes | 8 No |
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