Journal Entry and Ledger Posting for Wage Expenses, paid through Bank Account

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Wages are the expenses of a Business organization which is paid to person/persons against their work done for that Business organization. 

Generally wages are not fixed in nature, it varies from time to time and it is paid within a short period of time.

Wages are paid hourly/daily/weekly basis.

Now let's discuss about the Journal Entry and Ledger posting procedure when Wages are paid through Bank Account.

When Wage Expenses are paid through Bank Account

Wages Account shows Debit effect and,

Bank Account shows Credit effect.

Journal Entry

Journal Entry for Wage Expenses paid through Bank Account.
Ledger Posting

In Wages Ledger Account

Wage Expenses paid through Bank Account - Posting in Wages Ledger Account.

In Bank Account

Wage Expenses paid through Bank Account - Posting in Bank Account.

Example :

In the Books of M/s.Jagannath Industries amount paid towards wages through HDFC Bank CA No-7020(IMPS Ref No-10250123) for ₹1750/- on dt.24/11/2022

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Wages paid.

In the above example 

Debit Ledger is :

  • Wages Account

Credit Ledger is :

  • HDFC Bank CA No.7020

Journal Entry

Journal Entry for payment of Wage Expenses through Bank Account.

Ledger Posting

In Wages Account

Wages paid through Bank Account - Posting in Wages Ledger Account - Example

In HDFC Bank CA No-7020 

Wages paid through Bank Account - Posting in Bank Account - Example

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Location: Cuttack, Odisha, India

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