Abc pays all its employees on a fortnightly basisthe, Ask an Expert

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ABC pays all its employees on a fortnightly basis.The following information is for its July and August -

July August
Fortnightly- Pay $580,000 $700,000
$720,000 $600,000
Gross pay month 1 300 000 1 300 000

Deductions:
Tax authority 250,000 245,000
Health fund 20,000 20,000
Community charity 4,000 4,000
Union fees 6,500 6,500
Total deductions - month 280,500 275,500

Net wages and salaries paid
14 July & 11 August 458,775 553,230
28 July & 25 August 560,725 471,270

Payroll deductions:

Tax authority - 15th day of the following month
Union fees - 3rd day of the following month
Health fund - 3rd day of the following month
Community charity - 21st day of the following month

2 fortnightly payrolls in August were for the fortnight ended Friday 7 August and Friday 21 August. Employees are paid on the following Monday and Tuesday respectively.
Required:

1. Journal entries to record the August payroll and all payments relating to employee benefits during the month of August.

2. A Journal entry to accrue the wages for the remaining days in August.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9953871

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