Question & Answer On How To Journalize Payroll Record

September 22, 2007 by

Question:

The following details are from the wages office records for week ending 30 June :

	$
Value of cheque drawn for net wages	10,380
PAYE deductions	1,792
Subscriptions To Recreation Club	58
National Insurance:employee	947
National Insurance:employor	984

Answer to above Question

	Journal	Debit	Credit
		$	$
30/6	Wages Expense A/c	14,161
	Social Security A/c (employee $947+employer$984)		1,931
	Income Tax A/c		1,792
	Recreation Club		58
	Wages Payable Accout		10,380
	Being details extracted from payroll for week ended 30/6/xx