Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 48 - No. 21)

When a business pays its employees’ wages, which of the following entries should be recorded?

Debit: Wages Expense; Credit: Cash

Debit: Cash; Credit: Wages Expense

Debit: Wages Payable; Credit: Cash

Debit: Cash; Credit: Wages Payable

Wages Expense represents the amount spent on labor and will be debited. Cash, the source of payment, will be credited.