General

Accruing Employee Overtime

Recording extra hours worked by staff that will be paid in the following month's payroll.

Account NameTypeDebit ($)Credit ($)
Overtime ExpenseExpense (+)350.00-
Accrued WagesLiability (+)-350.00

💡 Accountant's Note

If employees work overtime in the last week of December, the expense must be recorded in December, even if the paycheck is issued in January.

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