Paid employees' salaries, 20,000. Employees' payroll deductions are made at the end of every month. the employees' payroll for July 31 is shown
Gross Pay 24,000
Deductions:
Withholding Tax 2,500
SSS Contributions 1,000
Health Contribution 500
4,000
Net Pay: 20,000
Where should I put this thing in the tabular analysis? What accounts will be affected?
To analyze these payroll deductions, you can use a tabular analysis format. Here's an example of how you can set up the table:
| Account | Debit | Credit |
| ------------------------ | ------------- | ------------- |
| Gross Pay | 24,000 | |
| Withholding Tax | | 2,500 |
| SSS Contributions | | 1,000 |
| Health Contribution | | 500 |
In this table, you list the accounts that will be affected by the transaction and determine whether each account should be debited or credited.
The accounts that will be affected are:
1. Gross Pay: This account will be debited for the amount of 24,000 since it represents the total amount paid to employees before any deductions.
2. Withholding Tax: This account will be credited for the amount of 2,500 since it represents the taxes withheld from employees' salaries.
3. SSS Contributions: This account will also be credited for the amount of 1,000, representing the contributions made by employees towards the Social Security System.
4. Health Contribution: This account will be credited for the amount of 500, denoting the contributions made by employees towards health insurance.
Note: It is important to understand that this is a simplified example, and there might be additional accounts involved in the actual accounting process, such as a liability account for accrued salaries payable or an expense account for payroll taxes. For a complete and accurate analysis, it's best to consult with an accountant or refer to specific accounting guidelines.