October 30, 2016 admin

Pensions

Expenses

PENSIONS EXPENSE ACCOUNT
8200/8205/8206

ACCOUNT EXPLANATION
Dealership contributions made on behalf of employees in accordance with the terms of plans for pensions, annuities, and retirement.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly accrual for dealership pension plan costs SE
    Pensions 8200
    Pensions—Service—QL/FL/QCSC 8205
    Pensions—Parts—QL/FL/QCSC 8206
      Accrued Pensions 2422
COMMENTS
  • In addition to the monthly required provision, this account should be charged with any lump sum payments to employees upon their retirement, unless the lump sum payments had been anticipated and included in the monthly accrual.
  • Termination pay to employees, other than upon attainment of normal retirement age, should be charged to their regular salary and wage accounts.
  • For departmentalization purposes, identifiable pension costs should be distributed directly to applicable operating departments. See Departmentalization for further information.
  • Legal and tax advice should be obtained in connection with planning and administering a pension plan and in determining the amount deductible for income tax purposes.