Accountancy, asked by shruti1924, 1 year ago

what will be the adjustment of outstanding wages in wages in final accounts with adjustments

Answers

Answered by thebananaboy
4

As Wages were Outstanding, they have become a liability of the business.

Effect 1 - Addition to the Wages in Trading A/C

Wages -----

Add: O/S Wages ------

Total in the Outer Column

Effect 2 - O/S Wages are a Liability of a Business Concern

Show them on the Balance Sheet Liability Side as O/S Wages along with the Amount in the outer column.

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