Components of wages and salary administration according to salary structure
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1. If Salaries and wages are given together, in that case, we treat it as an indirect expense (as salaries), hence, 'salaries & wages' are debited to Profit and Loss Account. This is because salary is paid to the white collar employees (or officers) who work in offices.
2.On the other hand, when 'Wages and Salaries' are given, then we treat it as a direct expense (as wages), hence, 'wages & salaries' are debited to Trading Account. This is because wages are paid to the blue collar employees (or workers) who work in factories.
3. In case, both wages as well as salaries are given (but separately) in the question, then wages are debited to Trading Account, whereas, 'salaries' are debited to Profit and Loss Account.
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2.On the other hand, when 'Wages and Salaries' are given, then we treat it as a direct expense (as wages), hence, 'wages & salaries' are debited to Trading Account. This is because wages are paid to the blue collar employees (or workers) who work in factories.
3. In case, both wages as well as salaries are given (but separately) in the question, then wages are debited to Trading Account, whereas, 'salaries' are debited to Profit and Loss Account.
hope it's help you.
plz mark me brainlest.
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