October 30, 2016 admin

Accrued Holiday Pay

Liabilities and Net Worth

ACCRUED HOLIDAY PAY LIABILITY ACCOUNT
2415

ACCOUNT EXPLANATION
Time off in lieu of working on designated holidays.
TRANSACTIONS
  Jrnl. Dr. Cr.
  Monthly accrual entry of estimated annual holiday expense SE
    Vacation & Time-Off Pay—Technicians
Applicable Salary Expense Accounts (other than technicians)		 7790
etc.
      Accrued Holiday Pay 2415
             
  Payment of holiday pay PR
    Accrued Holiday Pay 2415
      Cash in Bank—Payroll 1002
COMMENTS
  • Payments for holidays are to be charged to Account 2415 on payrolls prepared for those periods in which such holidays occur. Handled on this basis, the account balance at December 31, should be zero.
  • Subsidiary records should support this account.