I have staff wages that are for hours worked in march but not normally paid till the coming month as monthly pay, How do I show these on the march end od of year accounts?
That would be a journal entry as follows
Dr Wages
Cr Wages payable
Thank you for that, I have done it as casual wages debt 1,000 and a casual wages credit 1,000 on the 31/3/14 does this sound right as I expected the profit and loss to go down and it didn’t?
you have done Dr and Cr in same account
yes I think so, what im trying to do is get some of the profit not to show on my 2014 account but to be there to pay the wages on the 2015 account is this possible?
Wages would be expense for 2014 but can be paid in 2015, expense is on accrual basis not cash
So my example of the £1,000 above would this be the right way to do if this was someone’s wages for the last 2 weeks of March?
entry should be as follows
Dr 7005 Wages - Casual £1000
Cr 2220 Net Wages £1000
How would I log there wages on the April accounts?
£1,000 part wages
£1,500 full wages
£500 remaining wages
And would it just be casual wages the same as I always use?
Any wages under PAYE should go into Gross wages nominal and credit to bank or net wages a/c if not paid immediately, once paid dr should go to net wages a/c and credit bank
These staff are only casual workers so no PAYE. I would be paying them on the 25th of April for hours worked last 2 weeks of March and first 2 weeks of April, after putting the journal through for the £1,000 at the end of March. I than have the remaining of the wages 500. I would be debting there accounts on April the 25th for the full £1,500.
On the 2015 profit and loss would I put the payment as the full wages (£1,500)?
Also would I need to do any other journals on the 2015 accounts to balance it?
Hope this explains what I’m trying to do, also thank you for your help so far.
your wages nominal in P&L should have 1000 in march, 500 in April and net wages payable should have 1000 in march and 500 in april will be credited from bank and so is 1000 to make net wages a/c nil
Just confirm I have it right I do a journal in march for
Dr 7005 Wages - Casual £1000
Cr 2220 Net Wages £1000
than a journal in April for the opposite way round to balance the books.
Cr 2220 Net Wages £1000
Dr 7005 Wages - Casual £1000
As well as putting £1000 through the march accounts to show payment and £500 through April accounts to show rest of payment?
NO
Journal for March
Dr 7005 Wages - Casual £1000
Cr 2220 Net Wages £1000
No need to reverse it in April
Journal for April
Dr 7005 Wages - Casual £500
Cr 2220 Net Wages £500
and then tag bank payments from bank against Net wages account amounting 1500
I have done the journal as you stated than gone into my bank statement and entered the wages and tagged it as net wages but the net wages on the balance sheet doesn’t zero is this right?
Also would you do a journal for the april part as these wages are for what is worked in april so wouldn’t they just be logged as normal?
Net wage should be zero, if you want to tag April wages payment direct into wages a/c 7005 that should be OK and no need of journal in that case
The net wages don’t zero is because I haven’t done my close down for year end?
I have put wages through on the bank statement part and they are showing on the balance sheet under net wages but it hasn’t reduced the amount owing is this because I need to do a end of year close down?
how much is balance?
I have put all the wages through on a journal which equals £2,211.98 I than put one of the staff members wage through today for £326.54 But the £2,211.98 has not reduced on the balance sheet even thou I can see the payment under the magnify glass.