Nanjing Ltd provides 4 weeks (20 days) of accumulating vested annual leave for each year of service. The company policy is that annual leave must be taken within 6 months of the end of the period in which it accrues. Annual leave is paid at the base salary rate (which excludes commissions, bonuses and overtime). A 17.5% loading is applied to annual leave payments.

The following summary data is derived from Nanjing Ltd’s payroll records for the year ended 30 June 2024. Base pay rates have increased during the year. The amounts shown are applicable at 30 June 2024.

After leave taken during the year had been recorded, Nanjing Ltd’s trial balance revealed that the provision for annual leave had a debit balance of \($262\)  460 at 30 June 2024.

Required 

Prepare journal entries to account for the liability for annual leave at 30 June 2024.

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Employee category Base pay/day Balance b/d 1 July 2023 Annual leave Accumulated during year Taken during year (days) (days) (days) Managers 660 100 200 260 Sales staff 330 150 600 630 Office workers 165 120 400 387 Other 150 60 200 240