What is the journal entry for recording Outstanding wages ?
A
Wages A/c Debit To Profit & Loss A/c
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B
Wages A/c Debit To Trading A/c
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C
Wages A/c Debit To Wages Outstanding A/c
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D
None of the above
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Solution
The correct option is B Wages A/c Debit To Wages Outstanding A/c
Outstanding wages are a liability for the company and hence, wages outstanding accounts is to be credited and wages is an expense to the company and has to be debited. Basically the entry for outstanding wages will be:-