Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 23 - No. 11)
What is the correct journal entry when paying wages by direct debit?
Debit Wages Expense, Credit Bank
Debit Bank, Credit Wages Expense
Debit Wages Expense, Credit Cash
Debit Cash, Credit Wages Expense
Explanation
Wages expense increases (debit) and the bank account decreases (credit) when wages are paid by direct debit.
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