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

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How do I record an advance to an employee and the deduction?
posted Jun 29, 2017 by Debolina Charaborthy

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1 Answer

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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.

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.

answer Jun 30, 2017 by Ati Kumar
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