Amara Sani In: Category - Journal EntriesWhat is paid wages in cash journal entry?journal entrywages ShareFacebook1 AnswerVotedRecent Dheeraj 2020-08-30T19:36:51+05:30Added an answer on August 30, 2020 at 7:36 pm In this growing competitive world, every organization needs to retain its loyal and trustworthy staff members and make a timely payment towards wages and salaries to its workers and employees. Timely payment not only motivates and built the confidence of the workers and employees but also encourages them to achieve organizations short term and long term goals.Journal Entry for wages paid in cashThis entry can be recorded in the books of accounts by using two different approaches of accounting. They are-1. Traditional Accounting ApproachParticularsL.F.AmountNature of AccountAccounting RuleWages a/c XXXNominalDebit- All expenses and Losses To Cash a/c XXXRealCredit- What goes out of the business.(Being paid wages in cash)2. Modern Accounting ApproachParticularsL.F.AmountNature of AccountAccounting RuleWages a/c XXXExpenseDebit- The Increase in Expense To Cash a/c XXXAssetCredit- The Decrease in Asset.(Being wages paid in cash)ExampleOn 4th March, Anna Ltd. makes a payment towards wages amounting to 40,000 in cash. Journalise the following transaction in the books of Anna Ltd.In the Books of Anna Ltd.DateParticularsL.F.AmountNature of AccountAccounting Rule4th MarchWages a/c 40,000ExpenseDebit- The Increase in Expense To Cash a/c 40,000AssetCredit- The Decrease in Asset.(Being wages paid in cash)Hope this helps.0Reply Share ShareShare on FacebookShare on TwitterShare on LinkedInShare on WhatsAppLeave an answerCancel replyYou must login to add an answer. Username or email* Password* Captcha* Click on image to update the captcha. Remember Me! Forgot Password?