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October 11, 2019
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

  • October 11, 2019
  • 2 replies
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2 replies

October 11, 2019

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
October 11, 2019

How about cash received back towards Salary advance recovery??

asha_kanta_sharma
July 3, 2020

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.