TOPIC 1 pt.2

Question 1

Payroll Monthly Entry

Answer 1

D
Wages and Salaries
SS Company Contributions

C
Cash in Banks
Witholding Tax
SS Payables
Salaries Payables

Question 2

Wages and Salaries Calculation

Answer 2

Gross Salary + Bonus/6

(The bonus is usually the same amount as the gross salary)

Question 3

SS Company Contributions Calculation

Answer 3

% x Wages and Salaries
or
Annual Ammount/ 12

Question 4

Cash in Banks Calculation

Answer 4

Sum of Debit - Sum of Credit

Question 5

Witholding Tax Calculation

Answer 5

% x Gross Salary (No Bonus)

Question 6

Salaries Payable

Answer 6

The Bonus

Question 7

SS Payables Calculation

Answer 7

SS Company + Employee % * Wages and Salaris

Question 8

Entries for the Bonus months (June + December)

Answer 8

D
Salaries Payable

C
Cash in Banks
Witholding Tax Payable

Question 9

Provisions

Answer 9

They are obligations that arise from past events, of uncertain cost or timing. This obligation will likely result in an outflow of resources. They are recorded both in the Income Statement and the Balance Sheet, since they are liabilities.

Question 10

Entries for Provisions

Answer 10

1. Provision

D
Expenses (6xx)
C
Provision (14x)

2. If an adjustment has to be made of a previous provision

D
Provision (14x)
C
Cash in Banks
Surplus Provision (79x) (The difference)

Question 11

Tyes of Provisions

Answer 11

• 141 Provision for taxes
• 142 Provision for other responsabilities
• 145 Provision for environmental issues
• 146 Provision for restructuring