Accounting·Basic accounting systems · NSSCO 2.8
Wages, deductions & the Wages Journal
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How does a business pay its workers, and how is every dollar of it recorded? In this lesson we meet wages and the salary scale, learn normal time and overtime, calculate a gross wage, take off the five deductions to find the net wage, then draw up a full Wages Journal, add the employer's contribution, record the payment in the Cash Book and post it all to the General Ledger.
What you'll learn in this lesson
By the end you should be able to (NSSCO Accounting 2.8):
- Explain the term wages
- Explain the basic salary scale
- Distinguish between gross and net wages
- Explain the difference between normal time and overtime
- Describe the deductions: pension fund, medical aid, PAYE, social security fund, union subscriptions
- Draw up a Wages Journal
- Complete the Wages Journal including employer's contribution
- Record the payments in the Cash Book
- Post the Wages Journal and the Cash Book to the General Ledger
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