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Advance Salary Journal Entry
Salary Advance ( Asset ) A/c
To Bank
Adjust it in Salary payable entry at the end of the month
Advance is a prepaid expense
Dr. Prepaid salary
Cr. bank
By the month end
Dr. Salary expense
Cr. Prepaid salary
To Salary Advance A/c (Asset)
To Salary Payable A/c ( Current Liability)
This Journal can be used to adjust the salary advance
To Bank A/c Cr
( Advance salary paid )
Salary A/c Dr
To Salary payable to Director A/c Cr
( Salary payable to Director)
payment entry
Salary payable to Director A/c. Dr
To Advance Salary Director A/c Cr
To Bank A/c Cr
( Salary paid after adjusting advance salary)
1) Advance Salary payment entry
2) Salary Booking entry
3) Actual salary payment entry with adjustment .
Dear Eiswar company paid two times , one is advance and another is actual Salary , thats why we have to do two payment entries
Advance Salary to Director A/c will be under Loans & Advances ( Asset ) Side Balance sheet .
This is the query
It will be payment entry and not journal entry.
Salary Advance ( Asset ) A/c
To Bank
Adjust it in Salary payable entry at the end of the month
This answer is given
Salary Journal Entries
For Example:
Vineet works is an employee of ABC electronics pvt. ltd. and his monthly salary is Rs 35,000. But he took some advance salary from Rs 10,000.
Now, lets check how to pass the entry.
Advance salary entry
Vineet Salary Advance a/c Rs 10,000
To Bank a/c Rs 10,000
Month end salary entry
Vineet Salary a/c Rs 35,000
To Vineet Salary Advance a/c Rs 10,000
To Vineet Salary Payable a/c Rs 25,000
Payment Entry
Vineet Salary Payable a/c Rs 25,000
To Bank a/c Rs 25,000
TDS is also applicable under 194J I guess
It is considered at the time of entering journal entries or at the time of making payment, which ever is earlier.
2% is attracted based on treshold.
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