The correct entry for the withholding of an employee's contribution to a pension plan is: (a)...
The correct entry for the withholding of an employee's contribution to a pension plan is:
(a) Salary Expense
Pension Plan Payable
(b) Salary Expense
Cash
(c) Pension Plan Payable
Cash
(d) Salary Expense
Pension Plan Expense
Homework Answers
Ans) Option (A) is correct
Salary expenses
Pension plan payable account
Reason: its not an expense for employer so it canot be charged to Pension plan expenses but employer is liable to pay to pension fund therefore Pension plan liability should be created.
At the time of making payment to pension fund:
Pension Plan Payable
Cash
Add Answer to:
The correct entry for the withholding of an employee's
contribution to a pension plan is:
(a)...
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