How to do the account of Accural and Prepayments?

Question

Accural and Prepayments 17-Jul-08

Dennis, the proprietor of Subang Bearings, provided the following details

with regards to the wages of his staf:

Accrued wages at 1 September 20X1 = $850

Accrued wages at 30 September 20X1 = $900

Wages expense ( Incurred ) for the month of September = $9,800

< Accrual - Outsanding - Owing >

Required:

Calculate the wages paid to his staft in the month of September 20X1

by constructing the Wages Account.

With-Out:

Profit and Loss for the year ended 31 March 20X1

Balance Sheet as at 31 March 20X1

Answer 1

Accrued wages account-

Beginning balance $850

Add Wages expense $9,800

less wages paid (?)

= Ending balance $900

From this, you can work out wages paid out in cash is $9,750