Payroll General Journal
According to the business’ requirements, many deductions are recorded in the ‘other deductions’ column of the payroll register.
If you look at the credit side of the payroll journal, the largest item is net pay. Net pay is the amount actually paid out in cash by the employer to the employees. The Cash in Bank account is credited with the total net pay.
Payroll liability is the difference between the gross earnings and the net pay. Each account is individually credited for the total amount shown in the payroll register.
The image below shows the journal entry to record a payroll check (General Journal).
