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Question

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:-
Wages A/c. debit
To wages outstanding A/c.

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