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yj8989
Jun 3, 2011, 03:50 PM
IF the given transaction with wages 400 .Should debit as asset or owner equity? So damn confuse!

Just Looking
Jun 3, 2011, 04:57 PM
Wages are an expense.

talal-crackdown
Jun 5, 2011, 02:34 AM
Hi,
You didn't clarify your question well...

1.if you are an employee and receiving wages then entry will be:
Debit Cash 400
Credit income 400

If you are an employer and giving wages to labor then entry will be:
Debit wages expense 400
Credit Cash 400

Hit me back if you don't get it