Employee Travel Advances

Code: 1171
👁 Views: 109

Account Information

Financial Statement Statement of Financial Position
Normal Balance Debit

Definition

Advances given to employees to cover travel and transportation expenses

Common Journal Entries

Issue travel advance to employee

Dr. Employee Travel Advances
Cr. Cash in Hand

Settle travel advance after return

Dr. Travel Expense
Cr. Employee Travel Advances

Recover excess travel advance

Dr. Cash in Hand
Cr. Employee Travel Advances

Pay extra expenses beyond advance

Dr. Travel Expense
Cr. Employee Travel Advances
Cr. Cash in Hand

Issue travel advance to employee

Dr. Employee Travel Advances
Cr. Cash in Hand

Settle travel advance after return

Dr. Travel Expense
Cr. Employee Travel Advances

Recover excess travel advance

Dr. Cash in Hand
Cr. Employee Travel Advances

Pay extra expenses beyond advance

Dr. Travel Expense
Cr. Employee Travel Advances
Cr. Cash in Hand

📐 IFRS vs US GAAP Accounting Treatment

IFRS IFRS 9 Financial Instruments
US GAAP ASC 310 Receivables

❓ Frequently Asked Questions

Q: What is employee travel advance?

A: A cash advance given to an employee to cover travel and transportation expenses (tickets, accommodation, transport), settled upon return by submitting invoices.