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The Following Journal Entry Accounts for One Week's (Five Days)salaries

Question 44

Multiple Choice

The following journal entry accounts for one week's (five days) salaries and wages for an employee:
Which of the following statements is correct?
Dr Provision for sick leave 240Dr Salaries and wages 160Cr PAYG tax payable 80Cr Cash 320\begin{array} { | l | l | r | r | } \hline \mathrm { Dr } & \text { Provision for sick leave } & 240 & \\\hline \mathrm { Dr } & \text { Salaries and wages } & 160 & \\\hline \mathrm { Cr } & \text { PAYG tax payable } & & 80 \\\hline \mathrm { Cr } & \text { Cash } & & 320 \\\hline\end{array}


A) The employee's gross salary is $400 per week.
B) The employee was absent from work for 3 days during the week and was paid for his/her absence.
C) The PAYG tax rate for this employee is 20%.
D) All of the given answers are correct.

Correct Answer:

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