330 Retirement Fund Payable

Liabilities

Accrued

Synopsis

Account 330 is established to record the amount of funds payable or accrued for payment toward a Retirement Fund.

Debits

Credits

Payments made

Provision for employer’s contribution to an employee retirement fund
Employees’ contributions to an employee retirement fund

Example 1

Record the payment of the commission payroll of $180,000 that includes both the employee and employer retirement benefits payable. The payroll tax accrual is $56,170 and the retirement benefits accrued is $14,400.

Journal: Payroll Journal

Entry:		Debit	Credit
Account 321	Salaries, Wages & Commissions Payable	$180,000
Account 025-01	Taxes – Payroll – New Vehicles Department	$5,090
Account 025-02	Taxes – Payroll – Used Vehicles Department	$3,095
Account 025-04	Taxes – Payroll – Finance & Insurance Department	$1,830
Account 025-05	Taxes – Payroll – Mechanical Department	$3,450
Account 025-06	Taxes – Payroll – Body Shop Department	$385
Account 025-07	Taxes – Payroll – Parts & Accessories Department	$1,550
Account 029-01	Retirement Benefits – New Vehicles Department	$1,200
Account 029-02	Retirement Benefits – Used Vehicles Department	$600
Account 029-04	Retirement Benefits – Finance & Insurance Department	$400
Account 029-05	Retirement Benefits – Mechanical Department	$900
Account 029-06	Retirement Benefits – Body Shop Department	$100
Account 029-07	Retirement Benefits – Parts & Accessories Department	$400
Account 202	Cash in Bank		$128,430
Account 323	Payroll Taxes Payable		$56,170
Account 330	Retirement Benefits Payable		$14,400

Example 2

Record the remittance of $14,400 for the retirement benefits contribution to the retirement benefits plan.

Journal: Cash Disbursements

Entry:		Debit	Credit
Account 330	Retirement Benefits Payable	$14,400
Account 202	Cash in Bank		$14,400

Comments

A credit balance represents unpaid contributions to an employee retirement fund.