Loan to employee

Abhishek (Accountant) (55 Points)

15 February 2013  

Dear All,

I have a query regarding loan to employee.

    If In the books, amount transferred to employee is shown as loan to employee, but really is not a loan, instead this relates to transaction of the company but transaction is of such a nature that it can not be shown in the books of account.

 

Now How can we adjust this loan.

 

Thanks