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    Salaries Question

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    kylepatrick.villegas17
    The document discusses salaries, wages, and employee benefits accounting. It includes examples of journal entries for wages, PAYG tax, annual leave, sick leave, and share-based compensation. There are also worked examples and scenarios showing how to account for employee share schemes over multiple years.

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    Salaries Question

    Uploaded by

    kylepatrick.villegas17
    26 views7 pages
    The document discusses salaries, wages, and employee benefits accounting. It includes examples of journal entries for wages, PAYG tax, annual leave, sick leave, and share-based compensation. There are also worked examples and scenarios showing how to account for employee share schemes over multiple years.

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    The document discusses salaries, wages, and employee benefits accounting. It includes examples of journal entries for wages, PAYG tax, annual leave, sick leave, and share-based compensation. There are also worked examples and scenarios showing how to account for employee share schemes over multiple years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    26 views7 pages

    Salaries Question

    Uploaded by

    kylepatrick.villegas17
    The document discusses salaries, wages, and employee benefits accounting. It includes examples of journal entries for wages, PAYG tax, annual leave, sick leave, and share-based compensation. There are also worked examples and scenarios showing how to account for employee share schemes over multiple years.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    You are on page 1of 7

    Salaries Question

    !0000 per week / 5 days as per day = 2000

    3000 per week / 5 days as per day =600

    500 / 5 = 100

    Thursday

    R wages and salary expense 8000

    R wages and salary payable 5200

    PAYG tax payable 2400

    Payable to oceanic medical 400

    1st approach

    Friday

    Dr wages abd sakary payable 5200

    Dr wgesand salary expense 2000

    Cr cash 6500 (10000-3000-500)

    Cr PAYG! 600

    Payable to oceanic medical 100

    2nd approach

    2 Friday

    Dr wages and salary expens 2000

    Cr wages and salaries payuable 1300

    PAYG tax payable 600

    Payable oeaniu medical 100

    DR wages & slaries payable 6500

    CR cash 6500
    Monday

    PAYG tax 3000

    OCeeaninc mbf pyabel 500

    Bank 3500

    Annual leave

    4 weeks

    52 weeks per year

    70000 x 4 / 52 x 1.175 = 6327 per year = 6327/52 = 122 per week

    For 48 =weejs at normal pay rate 70000x48/52 = 64615

    For four weeks inclusive of loading 6327

    Total salary and annual leave = 70942

    Or 70000+ 70000/52 x 4 x17.5% = 942

    = 70942

    Journal entry for each week

    Annual leave expense 122

    Provision for annual leave 122

    If then takes two weels annual leae the entry woiuld be with tax of 500

    6327 is already 4 weeks so divide by 2

    Provision of annual leave (6327/2 weeks) 3163.5

    PAYG tax payable (500x 2 weeks) 1000

    Bank 2163.50
    Usual weekly annual leave jounral entry

    Annual leave expense 122

    Provision on annual leave 122

    Sick leave

    2 weeks is 50% of employees

    20% of employees 1 week only

    100000 x 2 x .5 = 100000

    100000 x 1 x .2 = 20000

    120000

    2308 per week (120000/52 weeks)

    Sick leave expense 2308

    Provision for sick leave 2308

    shares

    Example 2 slides

    6.50 - 5 x 10000 = 15000

    Homework question 1
    Provision of goods

    Same price of 140000 with the 10000 shares

    Inventory 140000

    Share capital 140000

    Worked example 17.2

    Employee benefits expense 15000

    Share Capital 15000

    17.3

    100 hares 500 employees

    100 *500 *15 =

    20% will leave during three year period

    Year remuneration exp. cummulative remuneration

    1 100*500*80%8$15 x 1/3 years 200000 200000

    2 100*500*80%8$15 x 1/3 years 200000 400000

    3 100*500*80%8$15 x 1/3 years 200000 600000

    Employee benefits expense 200000

    Share capital 200000


    Scenario 2
    End opf year 1

    Employee benefits expense 212500

    Share capital 212500

    End opf year 2

    Employee benefits expense 227500

    Share capital 227500

    End opf year 3

    Employee benefits expense 224500

    Share capital 224500


    Accounting for share capital rightss

    Year end calculation remuneration expense cumulative

    30 june 2016 20000 x (3 – 2.50) 100000 100000

    30 june 2017 20000 x 9 2.90 - 2.50) - 100000 (20000) 80000

    30 june 2018 200000 x (4.10 - 2.50) -80000 240000 320000

    30 june 2016

    Employee benefits expense 100000

    Accured slaries payable 100000

    30 june 2017

    Accrued slaries payable 20000

    Employee beneifts expense recouped 20000

    30 june 2018

    Employee benefits expense 240000

    Accured slaries payable 240000

    1 July 2018

    Acrueid slaries payable 320000

    Bank 320000

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