How the wages control account works
Every payroll journal passes through the wages control account. If it does not end at nil, something is missing or wrong.
Task 1An account that payroll passes through3 questions
The wages control account is a general ledger account used only for payroll. Every payroll journal has one side in it.
- The full cost of the payroll is credited to it
- The amounts owed to HMRC and to the pension provider are debited to it
- The net pay is debited to it
The debits should equal the credit. Once every journal is posted, the balance is nil.
Task 2May in the wages control account4 questions
Task 3When the account does not clear2 questions