Intro.

to financial accounting

SUBMITTED BY JAVARIA KHAN

SUBMITTED TO PROF. IMRAN ALI
 Current liabilities

 A current liabilities is an obligation that is payable

within one year.
 Example :
 Account payable
 Interest payable
 Warranty payable

 A liability account that reports the estimated amount

that a company will have to spend to repair or
replace a product during its warranty period. The
liability account is recorded at the time of sale. OR
 Liability that is both probable and capable of being
estimated.
 Contingent liabilities

 A contingent liabilities is a potential liability that

may or may not become an actual liability. Whether
the contingent liability become an actual liability
depends on a future event occurring or not
occurring.
 Account for payroll

 Payroll accounting is the function of calculating and

distributing wages, salaries, and withholding to
employee an certain agencies. It is done through
different documents such as time sheets , paycheck,
and payroll ledger.
 Net pay

 Net pay is the amount of pay remaining for issuance

to an employee after deduction have been taken from
the individuals gross pay. This is the amount paid to
each employee on payday.
 Formula.
 Gross pay – payroll taxes – other deduction =Net
pay.
 Gross pay

 This can be the total amount of wages and overtime

earned. OR
 The total amount of salaried compensation. It also
include other form of compensation such as
commission and bonus
 Payroll withholding deduction

 Payroll deduction also called payroll withholding are

the amount with held form employee paychecks or
gross pay by employee. They are called deduction
because this is the amount of money deduction from
employee’s gross wages. There are many types of
payroll deduction that employees have withheld
from their paychecks.
 Employee payroll taxes

 Employee payroll taxes include an employer’s

portion of social security and medicine taxes and the
state and federal unemployment taxes.
 Internal control over payroll

 Payroll internal control are the procedures your

business follows to protect its payroll information.
Payroll controls and procedures prevent employees
from ascending confidential information. Internal
control also prevent employees from stealing money
from your business through overpayments and false
time record.