mjdf13 (junior accountant) 21 August 2013
Sir, I am a junior Accountant, my question is My Company given Loan to one Employee 18000 SAR
And It is Deducting 3000 SAR (Saudi Riyals) PM. From Salary. Salary of Employee is 7000 SAR
When Loan Given to Employee
1) Advances To Employee A/c (Current Assets) Dr. 18000
To Bank A/c CR 18000
2) Salaries A/c Dr.4000
Advances To Employee A/c Cr 3000
To Bank A/c Cr 4000
# But These Transaction should reflect in Employee Personal A/c Also. Please guide me correct procedure of accounts & Accounting jounral entries. In Balancesheet How it shows and in P&L HOw it shows.
I am not good in English so please understand as per your knowledge. and give me correct answers
Praveen Kumar Agarwal (Accountant) 21 August 2013
Mihir (Wealth Manager) 21 August 2013
You will have to create a personal ledger for the entry to reflect in employee's personal account. You can write proper narration in the voucher and if need be, you can prepare a promissory note and ask the employee to sign.
The above journal entries are correct except the mistake pointed by praveen.
Rajiv Limbachiya (Deputy Manager) 21 August 2013
Your entries is correct, but you have to use particular Employee's account instead under current account of Advance to Employee account like....
1) ABC (Employee) A/c. Dr 18000 (B/S A/c)
To Bank A/c. Cr. 18000
2) Salary A/c. Dr. 7000 (P/L A/c)
To ABC (Employee) A/c. Cr 3000
To Bank A/c. Cr 4000
Krunal Jani (Article Assistant) 07 September 2013
do only 1 thing..... create that employee's personal account and show it under the same head/group in which it is already shown i.e. Advance to Employee A/c (Current Assets)...
Indira Priyadarsini Kota (Student) 19 January 2021