Accounting treatment is as follows:

Debit: bank deposit/cash on hand.

Loan: wages payable to employees.

Debit: payable to employees.

Credit: adjustment of profit and loss in previous years

Debit: previous year's profit and loss adjustment

Credit: profit distribution-undistributed profit

Surplus reserve, etc

How to deal with the accounting of rewards for employees?

1. If these prizes are not products operated by the company, they will be included in the welfare payable. The accounting entries are as follows:

Debit: welfare fund payable

Credit: related subjects

2. If these prizes are products operated by the company, they need to be treated as sales. The treatment method is: pay value-added tax according to the market sales price and carry forward the cost according to the cost price. When the income tax is settled at the end of the year, the tax must be increased. The accounting entries are as follows:

Debit: welfare fund payable

Loan: Taxes payable-VAT payable (output tax)

How to deal with bonuses and overtime pay received and returned in previous years?