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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 cash
This entry can be recorded in the books of accounts by using two different approaches of accounting. They are-
1. Traditional Accounting Approach
(Being paid wages in cash)
2. Modern Accounting Approach
(Being wages paid in cash)
Example
On 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.
(Being wages paid in cash)
Hope this helps.