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Oct 11, 2019 6:06 AM UTC
Question

How to make cash payment entries affecting other than receivables or suppliers eg how to make cash payment or cash receipt entry for salary advences

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3 replies

Oct 11, 2019 6:59 AM UTC

Hi cvsuren, please create an account under 'Current Assets' as the advance salary is Prepaid Expense. Then pass the expense voucher and select the account 'Advance Salary'.

cvsurenAuthor
Oct 11, 2019 7:07 AM UTC

How about cash received back towards Salary advance recovery??

asha_kanta_sharma
Jul 3, 2020 5:32 PM UTC

If you are making Salary Advance, the journal entry will be as follows

 

Salary Advance Dr.

Cash or Bank Cr. 

 

In case you are making advance payments to vendors, the journal entry will be as follows

 

Vendor Dr.

Cash or Bank Cr.