Meanings of Salary

by Urvashi
(Delhi)

Why does salary have different meanings under different headings?

For example: When we are calculating gratuity we include basic salary, dearness allowance, and commission but when we are calculating the value of prerequisites like rent free accomodation we include basic salary, dearness allowance, commission, bonus etc..

Why?


Hello Urvashi,

Thank you for your question.

Their may be different meanings under different headings when it is known that certain accounts aren't used under a particular heading. Otherwise, they may have simply been set-up differently. If you would like them to match, you can add on the accounts that are missing under the appropriate heading.

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Quicken Home and Business Category For Salary?

by Marti

I am a sole proprietor with a very small, simple business (tutoring.) How do I categorize withdrawing money? I have my salary category as under the "personal income" type in my personal checking account for my deposits, but when I withdraw money for my salary from the business account I don't see anything appropriate in the standard quicken home and business categories. I have thought it would come up as some type of business expense, but I need to make sure. Also when I try to set up such a category quicken home and business seems to want to automatically re-assign the withdrawal to "personal expense."

thanks

Marti

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Salary Payments

by Jade
(Maine)

If I hire a receptionist for $290.00 a week but pay her at the end of the month how do I post this in the "General Journal"?

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Statutory Holiday and Overtime

by Benjamin
(kitchener Ontario)

Remembering

Remembering

Here is how I record when someone works on a Statutory Holiday. I first calculate their Statutory holiday. we will say 6 hours @ $12.00 per hr.

Hours actually worked: 31
Statutory Hours worked = Overtime = 5
Statutory Holiday = 6

My question is would you record the overtime under Overtime wages or would you record it under Employee Benefits Statutory Holiday?

I have been recording the expenses on the income statement as:

Wages: 372.00
O.T. wages: 90.00
Stats: 72.00

There has been some debate that maybe I should be recording the O.T. under Stats rather then O.T. Wages because the O.T. was given due to working the Stat.

What do you think?

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Wage Discrepancies

by Louisa
(Sydney, Australia)

The employees payroll shows an amount of $500, but the boss paid the amount of $450, how
do I show this in the accounts, as I need to reconcile the bank account and I am unable to as there's a $50 difference. Do I credit the wage expense account and debit the bank account?
Your advice is much appreciated.

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Salary Credited or Debited?

by Nitesh-

Is salary debited or credited?

Thank you for your question about salaries. The salaries account for amounts paid to employees typically carries a debit balance. A normal transaction for paying an employee would look as follows:

$ Cash Account Credit
$ Salary Expense Debit

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