Answer:
On 25 September, we have:
Debit Salary expenses for $5,750,000; Credit Bank for $3,750,000; and Credit PAYE payable for $2,000,000.
Explanation:
On 25 September, the journal entries will look as follows:
<u>Date Account Title Dr ($) Cr ($) </u>
Sep. 25 Salary expenses 5,750,000
Bank (w.1) 3,750,000
PAYE payable 2,000,000
<em><u> (To record total gross salary.) </u></em>
Note that when the PAYE is eventually paid to the authorities in October, let say on October 5, the journal entries will look as follows:
<u>Date Account Title Dr ($) Cr ($) </u>
Oct. 05 PAYE payable 2,000,000
Bank 2,000,000
<em><u> (To record PAYE paid to the authorities.) </u></em>
Workings:
w.1: Bank = Total gross salary - PAYE = $5,750,000 - $2,000,000 = $3,750,000