Advance salary considered as bad debt

16 March 2023

if a employee becomes untraceable after receiving advance salary for 2 years does the amount paid is considered as bad debt?

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7 Replies

sabyasachi mukherjee (27740 Points)
Replied 16 March 2023

Wrong to be adjusted with expenses.

1 Like

Atharv Sankliya (1359 Points)
Replied 16 March 2023

Then what is the treatment sir

sabyasachi mukherjee (27740 Points)
Replied 17 March 2023

Advance staff dr
Cash cr.

expenses for salary dr.
advance staff cr.

1 Like

Eswar Reddy S (CFO- at NHTF) (58275 Points)
Replied 17 March 2023

How much is the advance given and how is outstanding yet ?

Ageing ?

3 Like

Atharv Sankliya (1359 Points)
Replied 18 March 2023

If a company pay 20 lac rs as advance salary to a employee and if he become untraceable then does it is considered as bad debt ?

Manish (CA) (1201 Points)
Replied 20 March 2023

Yes, it is a bad debt.

1 Like

Giftlaya SM (2 Points)
Replied 27 March 2023

Advance Salary to Director accout will be under Loans & Advances ( Asset ) Side Balance sheet

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