Dennis Carter works for Midrift Ltd and has taken his long-service leave this period.He was paid $2450 as his entitlement.What account(s)is/are debited in the entry to record this event?

Question

Quizplus · Accepted Answer

The correct account to debit when recording the payment of a long-service leave entitlement is the "provision for long-service leave." This is because the provision account is set up to accumulate funds specifically for this purpose, and when the leave is taken, the provision is reduced by debiting it. PAYG tax deduction relates to tax withheld and is not relevant to the debit side of recording the payment of a long-service leave entitlement.

Dennis Carter Works for Midrift Ltd and Has Taken His