Journal Entry and Ledger Posting for Wage Expenses incurred but not yet paid.

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 incurred but not yet paid.

When Wage Expenses are incurred and but not yet paid,

Wages Account shows Debit effect and,

Wages Payable Account shows Credit effect.

Journal Entry

Ledger Posting

In Wages Ledger Account.

In Wages Payable Ledger Account.

Example :

In the Books of M/s.Jagannath Industries Wage Expenses incurred for ₹2170/- on dt.31/12/2022 but not yet paid.

Pass necessary Journal Entry and Post them into their respective Ledger Accounts for Wages incurred but not yet paid.

In the above example 

Debit Ledger is :

• Wages Account

Credit Ledger is :

• Wages Payable Account
  

Journal Entry

Ledger Posting

In Wages Ledger Account

In Wages Payable Ledger Account.

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Table of Contents

Related Articles :

Types of Account

Double Entry System of Book Keeping

Journal 

Ledger 

Trial Balance

Trading and Profit & Loss Account

Balance Sheet

Bank Reconciliation Statement