Employee Cash Advances

Code: 1172
👁 Views: 120

Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

Cash advances granted to employees for daily business purposes

Common Journal Entries

Disburse cash advance to employee

Dr. Employee Cash Advances
Cr. Cash in Hand

Deduct advance from salary

Dr. Salaries Payable
Cr. Employee Cash Advances

Employee repays cash advance

Dr. Cash in Hand
Cr. Employee Cash Advances

Write off advance of resigned employee

Dr. Bad Debt Expense
Cr. Employee Cash Advances

Disburse cash advance to employee

Dr. Employee Cash Advances
Cr. Cash in Hand

Deduct advance from salary

Dr. Salaries Payable
Cr. Employee Cash Advances

Employee repays cash advance

Dr. Cash in Hand
Cr. Employee Cash Advances

Write off advance of resigned employee

Dr. Bad Debt Expense
Cr. Employee Cash Advances

📐 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.