Please explain this correcting jounral entry Debit Accrued L

Please explain this correcting jounral entry:

Debit Accrued Liability $100

Credit Employee Benefit Expense $100

This entry was to correct a payroll error. Can you please explain is this getting rid of an benefit expense it did not need? Or is this being entered in order toadd in a missed prior amount from somewhere along the way? Please explain what is happening with this journal enty,

Solution

This entry is reducing the employee benefit expense amount and the accrued liability at the same time.

A debit to accrued liability means that the liability amount is being reduced.

A liability may be reduced for a variety of reasons, if it is paid off or if it is felt to be in excess of desired amount etc.

A credit to employee benefit expense will go on to reduce the employee benefit expense incurred.

This entry may have been recorded to reduce the wrongly recorded employee benefit expense.