QuickBooks Tips & Tricks RECORDING EMPLOYEE ADVANCES
Detailed directions on how to record an employee advance. Two examples are shown. 1.) The Company purchases something for the employee and the ...
How to Enter Salary and Salary Advance Entries in Tally ERP9
For More Details : http://vidyatv009.blogspot.com/2018/09/how-to-enter-salary-details-in-double.html Dear Friends, Today we are discussing about how to enter ...
If the cash advance is repaid through payroll withholdings, the amount withheld will be recorded as a credit to Advance to Employees. If the employee gives the company a personal check to repay the advance, the Cash account is debited and the account Advance to Employees is credited.
A payroll advance journal entry is used when a business wants to give an employee a cash advance of their wages. The payroll advance is in effect a short term interest free loan to the employee to be repaid when they next receive their wage payment.
When a company sets a predetermined amount to cover employee’s business expenses each month, the accounting for employee advances is similar to the accounting for petty cash. For example, at the beginning of each month Company ABC advances $1,000 to its sales manager, John Smith, for travel-related expenses.
An advance paid to an employee is recorded as a current asset in the company's balance sheet.There may not be a separate account in which to store advances, especially if employee advances are infrequent; possible asset accounts in which to store this information are:
Accounting Entries of Advance to Employee : In My Books 1. When I will give Advance to My Employee Because I did not receive the service from my employee. So, all the advance money will be my asset. Any increase in my asset will be debit in my own books. So, I will record in my books. Because my cash will go to the pocket of my employee. So, cash will decrease. Cash is also my asset. So, any decrease in the asset will credit in journal entry.