Outstanding salaries or outstanding wages are those that are due and have not been paid to the employee. but have yet to be paid. Let us explain the outstanding salary with an example: the employees of a corporation worked during the month of April. It is now May 3rd, and they have still not been paid, therefore their wages are “payable,” “owed,” or “overdue” (all the same thing). Salaries are an outlay of funds.
In this article, you can learn more about outstanding salary. Thus, when salaries are unpaid, or owed, we record a liability (debt) account called salaries payable.
-Is outstanding salary an asset?
-In accounting, what is the meaning of “salary outstanding”?
-How can we help you obtain more information about your outstanding salary?
1. Is outstanding salary an asset?
Is outstanding income an asset or liability? What is an outstanding salary?
Outstanding wage is a liability for the company that must be paid during the current accounting period. As a result, it is classified as a current liability in accounting. Our website has additional questions and answers concerning business studies and other commerce themes.
2. In accounting, what is the meaning of “outstanding wages”?
Accounting is typically done on an accrual basis. Under accrual accounting, all costs are recorded when they occur rather than when they are paid, and all revenue is recorded when it is earned rather than when it is received.
Wages that have occurred but have not yet been paid by the employer are referred to as outstanding wages.
Dr. Wages Expenses will be the first entry.
Outstanding Wages in Cr (Credit).
Outstanding Wages will appear as a liability on the Balance Sheet, while wage costs would appear on the Income Statement (aka Profit and Loss).
When the payment is complete:
Dr.: Excellent Wages
Cr: Cash or Bank?
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