How to pass salary advance entries in tally???

Prepaid Salary A/c  .... Dr.

To Cash/ Bank A/c

(Create a new ledger in the name of ''Prepaid Salary" which will become nil subsequently in the next FYs and will be charged off to Salary A/c)

I) at the time of payment

Advances to employees or Advance salary A/c Dr

(under Loans & advances)

To Cash or Bank

II) When salary will become due

Salary A/c Dr

To  Advances to employees or Advance salary A/c

I m already passed entry as follow-

1)At the time of Advance Given

   Employee ( Name) A/c-Loan & advancesDr

           To Cash/Bank A/c

2) At the time of salary paid-

   Salary A/c ...Dr

           To Cash / Bank A/c

           To  Employee ( Name) A/c-Loan & advances

IT IS RIGHT ?

At the time of remitting advance

Advance to employee  Dr.

TO cASH/ bANk a/c 

At the time of deducting

Salary a/c Dr

To advance to employee

Ya seema vicky said right........................

Suppose, an employee' s salary of Rs.10000 & he want to Rs.3000 in advance

1)At the time of Advance Given-

   Employee ( Name) A/c-Loan & advancesDr   Rs.3000         

            To Cash/Bank A/c  Rs.3000

2) At the time of salary paid-

   Salary A/c ...Dr      Rs.10000      

            To Cash / Bank A/c            Rs.7000

            To  Employee ( Name) A/c-Loan & advances RS.3000 
why can not cerdit the Bank account in second entry? 

Hello Seema, Yes, sure you can. In your earlier post, I had assumed the full salary being given as advance. If it is partly paid in advance, ofcourse you have to pass entry for Bank Account as well.

Thanx a lot for ur suggestion

hi, 

Welcome to the world of accounting . Accounting is an ocean .At present I am working in the department of finance as accounting manager. I deal with lot of issues relating to salaries because my principal job is to see that every employee is paid salary correctly. As Mr Vicky pointed out the second entry has a cash or bank account credited. From my experience once advance salary is paid , this they will adjust the next time is paid . it is some what like this:

Gross  :                 10000

(-) deductions :

  Provident fund     (100)

 Fund                     (20)

Advance salary      (2500)

Net salary               ;7380

So the second entry is:

Salary a/c  dr 7380

To cash                           4880

To employee advance     2500

This is bit confusing  and complex in nature.

suppose an employee salary 12000  and he want 3000 in cash i pass entry in tally

advance given

loans and advance 3000

to cash a/c

after salary entry i pass

salary payable 9000

salary advance 3000

To cash a/c/bank a/c

is this entry correct pls inform me

suppose, MANU`s salary/month   Rs 10000

advance paid     Rs 3000

1)   advance payment

           advance salary (loans & advance)   Dr   3000

                cash / bank                                          3000

2)  salary due

        salary a/c (i . exp.)                           Dr   10000

                 manu`s salary                                      10000

3)  salary payment

        manu`s salary a/c                           Dr       10000

                cash/ bank                                              7000

                advance salary (l & adv)                            3000

SUPPOSE,

MANU`s Salary  Rs 10000

advance paid to him   Rs 3000

je

1)   when advance given

      advance salary (loans & advance ) a/cDr       3000

              cash/ bank                                                  3000

2)  salary due

      salary a/c (ind. exp.)                      Dr             10000

                Manu`s salary a/c                                        10000

3)    salary payment

         Mnau`s salary a/c                        Dr             10000

                 cash / bank                                                   7000

                  advance salary  (loans & advance)                 3000

whether it is true or false pls reply 2 me

If your number of employee more than 700 how to pasa your 2nd entry