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Former Member

what is expense acct. and balance sheet acct.?

HEllo folks,

Please bear with me for being new in payroll.. Please explain in simple terms abt expense acct. and balance sheet acct.

Thanks,

Jess..

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  • author's profile photo Former Member
    Former Member
    Posted on Aug 12, 2009 at 06:25 PM

    these are finaical accounting terms.

    in connection to payroll, i can say.. the payments made to employee is expenses to the company... thus Earnings of an employee would be posted to Expense Accounts.

    deductions from employee in are posted to Balance Sheet Accounts (Balance sheet account contains Assets and Liabiliites).

    ex. deduction for Income Tax from Salary are inturn payable to govt/IT dept. thus these become Payable i.e., Liability Accounts.

    hope this is clear.

    Regards

    ...Sadhu

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  • Posted on Aug 13, 2009 at 02:16 AM

    Any amount which you pay to an employee from the employer will have impact on Expenses and Balance sheet

    say when an employer gives salary to an Employee his cash Reserves will get decline so two entries shd be made in Balance sheet and Expenses

    >FICO consultants are the correct persons to guide you in this issue as the Payments and balances of wage types from HR side will be more with different characterstics

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  • Posted on Aug 13, 2009 at 02:46 AM
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