Employee advance given by owner

the owner of a businss pays an employee an advance of 1000 and later takes money from his business , so what will be the entries. Usually when employee takes adavnce from company the entry will be

 

dr employee advance (current asset) 1000

cr cash                                                1000

 

but when owner gives advance and later takes money from busines, how will the entries be recorded....pls help..thanks!!!

Replies (1)

It is just like, Mr. A gave money to Mr. B on behalf of Mr. C and taken back that money from Mr. C. So Ultimately Mr. C given money to Mr. B.

 

So Entry will be 

Mr. B A/c Dr. 

To Mr. C (or Cash)

No need to record the entry for cash given to employee by owner from his own pocket, because he has already taken that money back from the business. If he would have not taken that money from business then the entry would be like this:

Dr. Employee Advance (Current Assets)

Cr. Business owner (Current Liabilities)

 

And when the business will pay back to owner his money another entry would be like this:

Dr. Business owner (Current Liabilities)

Cr. Cash (Current Assets)

 

It will round off Business owner's account to NIL

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
Featured 29 October 2026
Accounts Executive

Synergy Keystone

Chennai

B.Com

View Details
Company
31 October 2026
Accountants

sankaran and krishnan

New Delhi

B.Com

View Details
Company
07 October 2026
Senior Account Manager

Amplio Invest

Mumbai

M.Com

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
05 October 2026
Senior Accountant

Vision IT Peripherals Pvt Ltd

Mumbai

B.Com

View Details
Company
Featured ARTICLESHIP 28 October 2026
CA- Inter and Articles

N N V Satish & Co.,

Hyderabad

CA Inter

View Details
Company
19 October 2026
Accountant

Jari Saree Center

New Delhi

Others

View Details
Company
ARTICLESHIP 29 October 2026
Article Assistant (CA Inter / CMA Inter) - Thrissur

Varma Raja & Associates

Thrissur

CA Inter

View Details