We cannot record this business transaction until we have the details regarding the company's own contribution for its employees' welfare.

In the journal book, we will record Wages and Salaries on the right side as a cost and Employee Payable on the left side as a liability for an amount equal to 60 000 €.

The first business transaction to be recorded considers the money flowing out for the company for the wages and salaries of its employees. Therefore, we will have Wages and Salaries on the left side as a cost, and Bank account on the right side as a cash-out for an amount equal to 60 000 €.

In the journal book, we will record on the left side Wages and salaries 60 000 € as a cost and Welfare institutions for 1 500 € and employee payable on the right side as a debt (61 500€).