journal for salary outstanding
Answers
Answer:
1. December 31st 2018 – (Overdue expense recorded as outstanding)
Rent Account 1,00,000
To Outstanding Rent Account 1,00,000
2. January 10th 2019 – (Payment made towards outstanding rent)
Outstanding Rent Account 1,00,000
To Cash Account 1,00,000
Treatment of Oustanding Expenses in Financial Statements
Once the journal entry for outstanding expenses has been posted they are then placed appropriately in the final accounts.
Treatment after journal entry for outstanding expenses
Related Topic – Journal Entry for Prepaid Expenses
Example – Journal Entry for Outstanding Rent
Let’s assume that in March there were 30,000 due to be paid for rent which wasn’t paid due to some reason.
At the end of the period, the company will record the situation into their books with the below journal entry.
Rent A/C 30,000
To Outstanding Rent A/C 30,000
Example – Journal Entry for Outstanding Salary or Wages
Journalize the outstanding items in the books of Unreal Corp. using the below trial balance and additional information provided along with it.
Outstanding Salaries – 30,000
Outstanding Wages – 20,000
Extract from Trial Balance of Unreal Corp.
Account Dr. Cr.
Salaries 70,000
Wages 80,000
Journal entry for outstanding expenses in the books of Unreal Corp.
Salary Account 30,000
To Outstanding Salary Account 30,000
(Salaries related to previous year transferred to outstanding salary account)
Wages Account 20,000
To Outstanding Wages Account 20,000
(Wages related to previous year transferred to outstanding wages account)