Accounting entry for loans & advances to staff

mjdf13 (junior accountant) (59 Points)

21 August 2013  

Hello Everyone,

Sir, I am a junior Accountant, my question is  My Company given Loan to one Employee 18000 SAR

And It is Deducting 3000 SAR (Saudi Riyals) PM.  From Salary.  Salary of Employee is 7000 SAR

When Loan  Given to Employee

1)  Advances To Employee  A/c  (Current Assets)  Dr. 18000

          To Bank A/c    CR  18000

2) Salaries  A/c  Dr.4000

      Advances To Employee  A/c Cr                       3000

     To Bank A/c                          Cr                            4000

#  But  These Transaction should reflect in Employee Personal A/c    Also.  Please guide me correct procedure of accounts &  Accounting jounral entries.  In Balancesheet How it shows and in P&L HOw it shows.

 

I am not good in English so please understand  as per your knowledge. and give me correct answers