Question

Q.2 How will you treat Salaries Outstanding in Final Accounts if it appears in the Trial balance?​

Answer 1

Answer:

Outstanding wages are related to the current year but remain unpaid. As they are expenses of the current year, they must be debited and charged from the profit and loss of the current year. The expenses remained unpaid during the current year, so they are the liability of the firm.

If outstanding wages are mentioned in the trial balance, they will be shown at the liabilities side only of the Balance Sheet (accounts appearing in the trial balance are shown only at one place in the final accounts).

Answer 2

Answer:

Add it to salaries in the P/L acc.

Explanation:

It gets added