ZigZag Pty Ltd made the following journal entry to accrue payroll for the week ended 28 February.
Dr) Cr.
$ $
Salaries expense 321 400
Australian Taxation Office 80 350
Superannuation fund 30 500
Salaries payable 210 550
(I)What was the amount of gross salaries earned by the employees of ZigZag Pty Ltd for the week; and (II)how much cash will be paid to them for salaries for the week?

Question

Quizplus · Accepted Answer

The entry records the accrual of salaries for the week ended 28 February, which is $321 400. However, not all of this amount will be paid in cash. The amount paid in cash will be the difference between the total salaries accrued and the amount still payable as at the end of the week. Therefore, the amount of cash to be paid to employees for the week is $210 550.

ZigZag Pty Ltd Made the Following Journal Entry to Accrue