Accounting

We answer your accounting questions.

Over 500 questions have been answered on our accounting blog. Click here to suggest a question.



March 25, 2009

How do I record an advance to an employee and the deduction?

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.

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.

Learn more about Payroll Accounting.

Related Questions



Comments

7 Responses to “How do I record an advance to an employee and the deduction?”

  1. Vivian Hee on March 30th, 2009 6:57 am

    What Entry Is Made When Selling Land

  2. honeybel on April 2nd, 2009 8:57 am

    i want to know every thing about accounting.

  3. yong sebastian on April 2nd, 2009 2:39 pm

    i am really grateful for the answers i has helped me alot and i need more of this sort.Honeybel what exactly do you wanna know about Accounting cos u need to start some where you so be specific thank you all.

  4. sjiaq on April 5th, 2009 7:06 pm

    thank you give your message

  5. pooh on April 11th, 2009 2:54 am

    i wanted you to put some cashflow questions,blancesheet questions with answers

  6. Sekou on April 16th, 2009 11:30 am

    Hi Sir/Madam:

    What is FX holding account.

  7. Daniel P on May 18th, 2009 7:18 am

    Sir/Madam
    I want to know everything about accounts.

Leave a Reply