21 – Salaries – Supervision

Personnel Expenses

Synopsis

Account 21

Debits

Credits

  1. Compensation of supervisory personnel.

  2. Salary of an individual employee on a salary basis who functions as a Sales Manager (or supervisor) and as sales person.

  3. Override compensation of supervisory personnel.

  4. The month-end accrual of salaries earned in the current period, payable in a subsequent period.

  1. The reversal of the month-end accrual, or adjustments to supervisory salaries.

 

 

Remarks:

Typical positions charged to this account would be: General Manager, Controller, Office Manager, and Department Managers.  Each salary charged to this account should be distributed according to the duties of the individual.  However, if an individual manages two departments, the salary should be prorated to those departments on an equitable basis.