When Cash Is Paid to Settle the Net Wages and Salaries

question 30

True/False

When cash is paid to settle the net wages and salaries due to employees the correct double entry to record this transaction is Debit wages control account, Credit bank.

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Definitions:

Consideration

Consideration in contract law refers to something of value promised to another when making a contract, which can be a service, money, or an object.

Bilateral Contract

A type of contract involving two parties where each party makes a promise or set of promises to the other.

Consideration

Something of value exchanged between parties in a contract, making the agreement legally binding.

Inadequate Consideration

A situation in a contractual agreement where the value exchanged between parties is significantly disproportionate or deemed insufficient.