Advance salary

it depends on the policy of the company on what gross or basic co pays salary advance

and u cant predict future attendance... so if you are not able to deduct the same in two months.. u can deduct the remaining balance in third month ..!!

at the time of advance

Salary advance Dr

                        To bank

at the time of credit

Salary dr.

           to salary advance ( for regular three months or so on until whole amount recovered)

Agree with Mr Ankit's reply

https://www.incometaxindia.gov.in/tutorials/tax-treatment-of-various-forms-of-salary.pdf

That is a good document which you should read,you need to inform employees on taxes of advance salary.If he takes advance salary in March which belongs to his projected earnings for April & May for next year then he will need to pay tax on that in current year.If he takes advance salary in middle or begining of FY then he will not have a tax burden.

As to calculation it is policy of the company to make future earnings based on some haircut or managerial discretion.The disbursal & collections of advance salary will be shown as current assets.In your case if intent is to help employee then 110000 or 130000 as advance salary does not matter.The Journal entry will be

1. Advance salary account

           To Bank

2.Salary Account

           To Advance salary ( after 2 months)