Advance salary

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709 Points Posted on 17 February 2020
advance salary entry
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On 17 February 2020 at 13:39 Report
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This discussion clarifies the accounting treatment for advance salary payments. The consensus is to initially record the payment as an advance under 'Loans and Advances - Current Asset'. Subsequent journal entries can then transfer this to the salary head or salary payable account. Best practices, including limits on advance amounts and the need for departmental and finance head concurrence, are also highlighted.

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"Do the Right Thing...!!!"
128157 Points Posted on 17 February 2020
As per my view first it will be enter as Advance. After that You can journal to salary head...


If You are not satisfied then prepare a ledger as Advance Salary and enter the same as salary....
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On 17 February 2020 at 13:56
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709 Points Posted on 17 February 2020
Under loan and advance
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On 17 February 2020 at 14:36
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"Do the Right Thing...!!!"
128157 Points Posted on 17 February 2020
Yes... You can account the advance under "Loans and Advances - Current Asset" head.
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On 17 February 2020 at 14:38
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Profession
28261 Points Posted on 17 February 2020
@ sumit
employee advance with employee code. dr.
cash /bank cr.
salary dr.
cr.advance
with proper narration.
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On 17 February 2020 at 14:41
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Accounts Manager
795 Points Posted on 23 February 2020

Staff Advance a/c   Dr.

To Bank/Cah /c Cr.

At the time of recovery

Salary Payable  a/c  Dr.(for which every month entries would have passed)

Salary Advance a/c Cr.

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On 23 February 2020 at 16:51
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Accounts Manager
795 Points Posted on 23 February 2020

Staff Advance a/c   Dr.

To Bank/Cah /c Cr.

At the time of recovery

Salary Payable  a/c  Dr.(for which every month entries would have passed)

Salary Advance a/c Cr.

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On 23 February 2020 at 16:52
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Profession
28261 Points Posted on 05 March 2020
Narashiman



salary payable cr..
should be there..


Any advance given should follow these rules


1. salary advance should not be more than half months salary drawn by him.
2. Any salary advance given to any employee should be given with proper concurrence of departmental head and finance head.
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On 05 March 2020 at 08:56
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17269 Points Posted on 05 March 2020
What the chap of above post is writing ?
Whose rules ? Under what ? what for ?
is this complimentary from that Chap ??
------
First part of above post is a good talented novel reply !!!
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On 05 March 2020 at 12:41

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