Reg. cash advance

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

16 June 2014 Hi All,

The Organization which I am Working Right Now, a New Employee has Joined and for 'TWO' Months he has been "DEPUTED" To Mysore Branch.

As per Management Decision & the Company Policy for a Person 'Sending (DEPUTATION)' To Our Mysore Branch, say Around Rs.5000 has to be paid.

In this case which Account head I should book this Expense (Or) What Exact ledger Account I should Open and Which Group head I Should Book?

Can anyone Please Guide me right now because I need to book this Exps. Today.

Look forward.

Thanks & Regards
S.Sugadeesh Kumar
9840962347

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

16 June 2014 5000 is paid as advance or for what exact purpose is not mentined is it advance salary?????

Querist : Anonymous

Querist : Anonymous (Querist)

18 June 2014 Rs.5000 is paid as Deputation Allowance. It is not Part Or Advance Salary.

Kindly reply to my Query now.

Thanks & Regards
S.Sugadeesh Kumar

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

20 July 2025 Hey! Since the Rs. 5000 is paid to the employee as Deputation Allowance (not as advance salary), here’s how you can treat it in your books:

How to Book Deputation Allowance Expense:
Ledger Account Name:

Deputation Allowance (or) Travel & Conveyance Allowance / Employee Allowances
Accounting Group:

Under Indirect Expenses → Employee Benefits Expenses or Travelling and Conveyance Expenses (depending on your chart of accounts)
Explanation:
Deputation allowance is typically an employee benefit or reimbursement for deputation-related expenses.
It is not salary or advance, but an allowance for the employee’s deputation assignment.
If the company treats it as a special allowance, create a separate ledger for clarity.
Entry example:

Dr. Deputation Allowance Expense A/c 5,000
Cr. Bank / Cash A/c 5,000
If you want to be super precise, check your company’s accounting policy or consult with your finance head if they want a dedicated ledger for such allowances.

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