Advance salary

Dear Sushant Gaurav,

There are not necessory to Open two Ledger in the name of Salary A/c and Advance Salary A/c.

Entry of Advance Salary Paid can made in the Same Salary A/c in stead of opening a new Advance Salary A/c.

However you can also manage two ledger but at the end of every Month you should be to pass transfer entry from Advance Salary A/c to Employee Salary A/c.

Regards,

Vikash Kharvar

YES YOU HAVE CREATED THE CORRECT LEDGERS

WHEN YOU WILL GIVE ADVANCE SALARY

ADVANCE SALARY AC -- - - - - - - - -- - DR.

             TO CASH/ BANK AC.

WHEN SALARY IS ADJUSTED AGAINST ADVANCE SALARY

SALARY AC - - -- - --  - - - -DR.

       TO ADVANCE SALARY AC.

     TO BANK AC

NOTE- ADVANCE SALARY WOULD BE UNDER L AND A        

Agree with Future ca

Very Well Explained by Future CA. Agreed.

Good Explanation Future CA.You can follow what he says.

I have a small question here,

Let say I have 10 employees. E001 and E005 is taking advance for 3 months.

As per suggestion by "Future CA" how can I find which employee has advance and till whcih date ?

Advance paid

1. A's Advance Ac Dr       2000

           Bank Cr                 2000

Salary Due end of the month

2. Salary Dr                    5000

       A's Advance Cr        500

       Outstanding Salary CR     4500

Payment of salary

3. Outstanding Salary DR        4500

        Bank Cr                           4500

Is this format is true and legal?