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Income Statement - chrisyb322 - 05-08-2009
Hi there, i have totally forget some basic concepts for my income statement and was just wondering if anyone can give me some advice and help.
If i have wages and salaries of 5000 on my trial balance,
and have 2000 outstanding on the date of my income statement, do i add them together as the expense as they represent the expense for the year that should have been paid?
obvioulsly its going to be a current liability in my balance sheet, but i was just wondering about this part first,
thanks chris
- noman - 05-09-2009
if the 2000 is not in ur trial balance (unrecorded) then yes..
wages and salaries Debit by 2000
Salary payable/other payable credit by 2000
if its recorded in liabilites and not recorded in salaries.......then ur trial balance must not balance..