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Cash balance not accounted

Dinesh@123 (Account Executive) (66 Points)

31 July 2024

If someone has not given the account of cash and we have deducted the balance from the salary, what will be his entry?

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2 Replies

CA Anoop Kumar Sharma (Accounts Manager) (1996 Points)
Replied 31 July 2024

As per my opinion first record the advance given and then offset it when deducting but subject to 40(A)(3) provison.

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prasad Nilugal ( GST Practitioner & Accounts ) (14570 Points)
Replied 31 July 2024

For example you have given Cash of Rs1000/- to Mr A as advance for an expenses, he has not given the account of Cash, so you have deducted from salary .

Advance to A A/c Dr 1000
To Cash A/c Cr. 1000
( paid to Mr A)

Adjusted against salary.

Salary A/c Dr 15000
To Salary Payable A/c Cr 14000
To Advance to A A/c Cr. 1000
( Advance given adjusted against salary)