Employee Receivables

Code: 1172
👁 Views: 301

Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

Amounts due to the company from employees, such as salary advances and other amounts repayable by employees. An advance is recorded when paid and its balance is reduced when the employee repays it or when it is deducted from salary payable. Each employee balance is tracked separately.

Common Journal Entries

Disburse cash advance to employee

Dr. Employee Receivables
Cr. Cash in Hand

Deduct advance from salary

Dr. Salaries Payable
Cr. Employee Receivables

Employee repays cash advance

Dr. Cash in Hand
Cr. Employee Receivables

Write off advance of resigned employee

Dr. Bad Debt Expense
Cr. Employee Receivables

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 310 Receivables

❓ Frequently Asked Questions

Q: What are employee cash advances?

A: Cash advances given to employees for daily business purposes (purchasing supplies, petty cash), settled upon submitting documents.