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Answer Posted / lince mathew
Wages are generally paid per hour. This means that you have
to be present and working in order to get paid. Most of the
time, wage jobs are not as inclusive when it comes to
things like paid vacations, or paid sick days. Wage earners
often have to give up pay for leaving early, coming in
late, missing a day, or taking a vacation. It is Direct
Expense and comes in Trading A/c.
Salary refers to how much you get paid every year. Salary
earners rarely have to punch a time clock, or keep an
accurate account of their hours, because they get paid for
performance rather than by the hour. Salaried workers are
much more likely to have paid sick days and paid vacations,
and are not docked pay for being late or leaving early from
time to time. It is Indirect Expense and shows in Profit &
Loss A/c.
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