Answer:
Debit Payroll expense $850
Credit Cash/Bank Account $790
Credit Deduction (liability) $60
Being entries to record payroll expense
Explanation:
Given;
Gross pay for the period = $850
After deductions were taken out, the net pay for the period = $790
Therefore, amount deducted = $850 - $790
= $60
The journal to record this would include;
Debit Payroll expense $850
Credit Cash/Bank Account $790
Credit Deduction (liability) $60
Being entries to record payroll expense
On remittance of the deduction to the appropriate party
Debit Deduction (liability) $60
Credit Cash/Bank Account $60
