Adjusting staff advance

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This query is : Resolved

CMA RAVI (Querist)

09 October 2012 I paid incentive to an employee...but for some reasons I had to reverse it by adjusting with his upcoming salary. So I passed this entry : STAFF ADVANCE A/C..........Dr.
To INCENTIVE PAYABLES A/C.

So when I go to incentive payables ledger its shows credit balance of that amount.

So how to clear off incentive payables account? Is there any other entries required eccept salary entry

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

09 October 2012 At the time of payment of incentive which entry passed i mean for which account you debited.

OM SAI SRI SAI JAI JAI SAI

CMA RAVI

CMA RAVI (Querist)

09 October 2012 (Incentive. A/C........dr
To INCENTIVE PAYABLES A/C ) (INCENTIVE PAYABLES A/C ....dr
To HDFC BANK A/C

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

09 October 2012 Then now pass the following entry.

Incentive payable a/c dr
To Incentive a/c
(Being incentive paid previously recovered from the employee so and so reason)

OM SAI SRI SAI JAI JAI SAI

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)

09 October 2012 Why because of the above entry previously recognised expenditure now returned i.e no expenditure so credit to the expenditure account to which you given debit.

OM SAI SRI SAI JAI JAI SAI

CMA RAVI

CMA RAVI (Querist)

09 October 2012 Oh so simple. Thanks buddy :) @ dintakurthi

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