My Videos (Accounts Officer ) (717 Points)
21 July 2023All Respected Members,
Please educate me that if an employer wants to give benefit to an employee by writing off his loan which is payable to firm ? What will be accounting treatment for it.
Please also share journal entry.
Thanks in advance for your precious time and efforts to reply this query.
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 21 July 2023
1) Either credited to him against adjusted in any expenses or
2) Make Cash receipts of that same value & credited to him.
My Videos
(Accounts Officer )
(717 Points)
Replied 21 July 2023
NARENDRA
(ACCOUNTS MANAGER)
(1994 Points)
Replied 22 July 2023
Though Employer wants to give benefit to the employee against loan , so one should have to write off all his debit balances , we have only 2 choices either make any journal entries & debit to the any expenses like office expenses,factory exp., salary, bonus, or ex gratia kind of or credited him by showing cash receipts or kind of because all n all this is just a book entries .
My Videos
(Accounts Officer )
(717 Points)
Replied 23 July 2023
Yasaswi Gomes new
(Finance )
(4514 Points)
Replied 24 July 2023
When company gave loan to employee
Dr. Loan and advances or employee or receivables
Cr. Bank/cash.
When writing off that loan
Dr. Loan write off - income statement
Cr. Loans and advances, employee or receivables
My Videos
(Accounts Officer )
(717 Points)
Replied 24 July 2023
CAclubindia
