Staff loan

Loan will go under Loans and Advances head under Current Assets

Employee account debit to Loan account and then at the time of repayment Loan account debit, Interest account debit to Employee Account

1. Loan to employee Dr.
To Bank
2. When repaid:
Bank dr.
To Loan to employee
To Interest( if any)

Thank you, One more doubt, We have to created individual names under loans and advances, My question, then we have to pass individual entry or have to create staff loan and pass the entry and which is journal entry, payment and receipt entry.. Please explain above doubt..

1. you can create group loan to staff under group loans and advances and then create individual ledgers of staff under the head loans to staff. or

2. You can create ledger loan to staff and maintain such ledger bill wise. While passing entry Dr. loan to staff and enter name of such employee in reference no. and due date of repayment in other column.

Better to Prepare Individual Ledger under "Loans & Advances (Asset) - Head... If Mr. X is Your eployee then Prepare a Ledger name as "X" under "Loans & Advances (Asset) - Head"...

 

At the time of Advance Payment Rs. 10000 (Examples) :

Dr. Mr X - Rs. 10000

Cr. Cash / Bank - Rs. 10000

 

At the time of Advance Received :

Cr. Mr. X - Rs. 2000

Dr. Cash - Rs. 2000

(May be multiple times of receipt)