Reg. cash advance

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)
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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

Aashok Kumar Sharma (Expert)
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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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