Journals

Question 1

What is the wages control account?

Answer 1

Used for recording gross pay, paying HMRC any employees contributions

Question 2

What is the wages expense account?

Answer 2

shows the total cost to the business of employing someone. Any Employer contributions uses this account.

Question 3

How to calculate how much is owed to HMRC?

Answer 3

Income tax + Employees NI

Question 4

How to record wages expense account?

Answer 4

Gross pay + Employer’s NI

Question 5

Record the wages expense account in terms of debit and credit

Answer 5

Wages expense Debit
Wages control credit

Wages expense is a debit cuz debit is an expense

Question 6

Record the net pay to employees in terms of debit and credit

Answer 6

Wages control Debit
Bank Credit

Question 7

Record the hmrc to employees in terms of debit and credit

Answer 7

Wages control Debit
HMRC credit

Question 8

Record the employers NI in terms of debit and credit

Answer 8

Wages expense debit
Wages Control Credit

Question 9

Record employers pension contribution in terms of debit and credit

Answer 9

Wages control debit
Pension Credit

Question 10

Which two entries are debits when dealing with payroll

Answer 10

Gross wages
Employer NI