Salaries and wages summary

Directorate: Curriculum FET


GRADE 10 ACCOUNTING TERM 2: Week 5
TOPIC: SALARIES AND WAGES (Ledger accounts)
You already know about... This lesson will enable you to...
 Concepts related to salaries and wages  Post to General Ledger accounts from the Wages
 Internal control measures and ethical Journal
considerations related to salaries and wages  Analyse transactions related to salaries and
 Basic calculations for net wages/salaries/ wages according to the Accounting Equation
deductions/contributions


Read more about Salaries /Wages in your textbook. Study the examples on posting from
the Wages Journal (WJ) to the various ledger accounts, OR
Refer to the following alternative digital resources:
Via Africa Gr 10 Study Guide (Eng only) Lucem Publishers Gr 10 Teachers Guide
(text book & workbook in one)
bit.ly/Gr10Via
bit.ly/Gr10LucemAE



CLASSIFICATION OF ACCOUNTS related to Salaries/Wages
LIABILITIES EXPENSES
 Creditors for Wages/Salaries (Net amount)  Wages/Salaries (Gross amount)
 Medical Aid Fund  Medical Aid Fund contribution
 Pension Fund  Pension Fund contribution
 Unemployment Insurance Fund  Unemployment Insurance Fund contributions
 Trade Union  Skills Development Levy (SDL)
 SARS (PAYE)
 Skills Development Fund (SDF)



ACCOUNTING PRINCIPLES:
Dr LIABILITY Cr Dr EXPENSE Cr
Balance XX Total XX
- + + -


Steps for analysing transactions according to the Accounting Equation
1. Identify the TWO accounts involved
2. Classify these accounts as a liability and/or expense
3. Apply the accounting principles (decide Dr or Cr ; + or -)




Gr 10 Accounting Term 2, 2020 1

, HOW TO POST TO THE GENERAL LEDGER
WAGES JOURNAL OF ABC TRADERS FOR FEBRUARY 2020 WJ1
Deductions Employer’s contributions
Gross Net
Employee Pen- Med. Pens. Med.
wages PAYE UIF Total Wages UIF SDL* Total
sion aid fund Aid




Debit Credit Credit Debit
Wages (N) Fund accounts (B) Creditors for Contribution accounts (N)
Pension Fund wages (B) Medical aid contributions
Medical Aid Fund Pension fund contributions
SARS (PAYE) UIF contributions
UIF Skills Development Levy (SDL)
*SDL = Skills Development Levy
paid to the SDF
Credit
Fund accounts (B)
Pension Fund
Medical aid Fund
UIF
Skills Development Fund (SDF)

NOTE: The same posting can apply to a Salaries Journal, but amounts will be for the MONTH.


ACTIVITY 1
You have been provided with the Wages Journal of Heathfield Traders for the week ending 22 May 2019.
Post to the accounts in the General Ledger:

Balance Sheet section Nominal section
Creditors for Wages Wages
Pension Fund Pension Fund Contributions
SARS (PAYE) Medical Aid Fund Contributions
Medical Aid Fund UIF Contributions
Unemployment Insurance Fund Skills Development Levy(SDL)
Skills Development Fund


WAGES JOURNAL OF HEATHFIELD TRADERS FOR THE WEEK ENDED 22 MAY 2019 WJ5
Overtime Deductions Contributions
Normal Gross Medi- Net
Employees Pen Pen Med.
Wages Hrs Rate Tot wage PAYE cal UIF Tot wages UIF SDL
sion sion aid
aid
H. Cloete 1600 5 60 300 1900 318 128 140 16 602 1298 147 140 16 19
H. Hofman 1600 1 60 60 1660 275 128 120 16 539 1121 147 120 16 16
C. Booyse 1520 - - - 1520 251 121 80 15 467 1053 139 80 15 15
4 720 360 5 080 844 377 340 47 1608 3472 433 340 47 50




Gr 10 Accounting Term 2, 2020 2