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Simbala Ltd pays over salaries to employees on the first working day of each calendar month. The company's year-end falls on 31 July. The total salary bill for July 2013 amounted to R200 000 and this amount would be paid over on 2 August 2013. (a) Show the journal entry that would have been passed on 31 July 2013 to account for the above. (b) If for some reason, R40 000 of the R200 000 was actually paid over on 30 July 2013 (i.e. before 31 July 2013), show the journal entries that would have been passed on 30 July 2013 and 31 July 2013 respectively

Simbala Ltd pays over salaries to employees on the first working day of each calendar month. The company's year-end falls on 31 July. The total salary bill for July 2013 amounted to R200 000 and this amount would be paid over on 2 August 2013. (a) Show the journal entry that would have been passed on 31 July 2013 to account for the above. (b) If for some reason, R40 000 of the R200 000 was actually paid over on 30 July 2013 (i.e. before 31 July 2013), show the journal entries that would have been passed on 30 July 2013 and 31 July 2013 respectively

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Simbala Ltd pays over salaries to employees on the first working day of each calendar month. The company's year-end falls on 31 July. The total salary bill for July 2013 amounted to R200 000 and this amount would be paid over on 2 August 2013. (a) Show the journal entry that would have been passed on 31 July 2013 to account for the above. (b) If for some reason, R40 000 of the R200 000 was actually paid over on 30 July 2013 (i.e. before 31 July 2013), show the journal entries that would have been passed on 30 July 2013 and 31 July 2013 respectively
Transcribed Image Text:Simbala Ltd pays over salaries to employees on the first working day of each calendar month. The company's year-end falls on 31 July. The total salary bill for July 2013 amounted to R200 000 and this amount would be paid over on 2 August 2013. (a) Show the journal entry that would have been passed on 31 July 2013 to account for the above. (b) If for some reason, R40 000 of the R200 000 was actually paid over on 30 July 2013 (i.e. before 31 July 2013), show the journal entries that would have been passed on 30 July 2013 and 31 July 2013 respectively
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