SmartAccounting - Petty Cash Advance
Accounting for Beginners #14 / Journal Entry with Cash / Expense
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A cash advance to an employee is recorded with a debit to an account such as Advance to Employees or to Other Receivables: Advances. The credit will be to the account Cash. If the cash advance is expected to be repaid within one year, the account Advance to Employees will be a current asset account.
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: Employee advances (for h
How to Account for Advance Payments In this Article: Classifying the Advance Payment Accounting for Customer Deposits Posting to Company Reports Community Q&A Receiving and accounting for advance payments from a client is a task that requires careful attention to the way entries are made in a company's accounting records.
Debit the customer advances (liability) account and credit the revenue account. It is generally best not to account for a customer advance with an automatically reversing entry , since that will reverse the amount of cash in the following month - and the cash paid is still in the cash account.
For events that require cash payments such as freight charges, payments to research subjects, meal charges on sponsored student trips, etc., departments must submit requests for advances in writing to Accounting and Financial Reporting. Each request must provide an explanation of the need for the cash advance.