Advance entry

Example Advance Salary paid and settlement.

Advance salary paid on 25 -5-2023

Advance Salary A/c Dr
To Bank A/c Cr
( advance salary paid)


On 31 St May 23 entry

Salary. A/c Dr
To Salary payable A/c Cr
( salary payable entry)


Actual salary paid on 4-6-2023

Salary payable A/c Dr
To Advance salary A/c Cr
To Bank. A/c Cr
( after settlement or advance adjustment, balance salary paid)