How to do accounting for advance payment to employee for exp

Dear All,

 

Could any one send me the whole accounting procedure to account advance to emp which will be adjusted against their monthly expenses.?

Himanshu

Replies (6)

when Advance is given

Advance for Expenses                Dr

                        To cash

 

when Bills are submitted by Employee

REspective Expense A/c                       Dr

                        To Advance for expenses

 

 

Thank you Nidhi

What would be the grouping for advance for empenses.?

Advance for expenses will come under current asset

Advance A/c Dr.

  To Mr. A's A/c


Later same being Deducted from his salary.. <if so>

Salary A/c Dr.

   To Mr. A's A/c

   To Advance A/c

WHILE GIVING CASH FOR EXPENSES LET US ASSUME FOR TRAVELLING EXPENSES. , IF THE THERE IS IMPREST ACCOUNT FOR CONCERNED EMPLOYEE THEN,

Mr.X Imprest A/c Dr     XXXX

To    CASH A/c                        XXXX

 

AFTER SUBMITTING BILL BY THE EMPLOYEE

 TRAVELLING EXPENSES A/C  DR  XXX

                TO  Mr.X IMPREST  A/C                           XXXX

 

 

 

 

 

At the time of advance Payment:

Imrest.....(name of employee) A/C Dr.

To cash A/c

Recieving time of bill against  such expenses

Related expenses A/c Dr

To     Imrest.....(name of employee) A/C

Any Adavnce given  comes under current Asests. loans& advance A/C

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