Treatment of salary Advances

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3 Points Posted on 09 September 2023

Advance paid

A's Advance Ac Dr       2000

           Bank Cr                 2000

 

Salary Due end of the month

Salary Dr                    5000

       A's Advance Cr        500

       Outstanding Salary CR     4500

Payment of salary

Outstanding Salary DR        4500

        Bank Cr                           4500  

Is this format is true and legal?

 

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On 09 September 2023 at 14:28 Report
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Quick Summary
This discussion clarifies the accounting treatment for salary advances. It outlines the necessary journal entries, showing how to record an advance payment and then offset it against the final salary due. The format presented is confirmed as valid and legal, with a reminder that proper narration is essential for all transactions.

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"Do the Right Thing...!!!"
128157 Points Posted on 09 September 2023
Yes, It's valid.
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On 09 September 2023 at 16:15
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Profession
28271 Points Posted on 10 September 2023
Narration is mandatory.
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On 10 September 2023 at 08:56

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