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.
Comments
7 Responses to “How do I record an advance to an employee and the deduction?”
Leave a Reply




What Entry Is Made When Selling Land
i want to know every thing about accounting.
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.
thank you give your message
i wanted you to put some cashflow questions,blancesheet questions with answers
Hi Sir/Madam:
What is FX holding account.
Sir/Madam
I want to know everything about accounts.