Multiple choice

Payment of wages is journalised as

  1. dr. expenses cr. creditors

  2. dr. wages cr. cash

  3. dr. creditors cr. wages

  4. dr. wages cr. capital

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Paying wages involves an expense and a decrease in cash. The wages account is debited because it is an expense, and the cash account is credited because an asset is leaving the business.