Salary Advances
my dear members my questions are:
What is the Ideal amount that can be given to employees as salary advances (1months or 2months or more can be given?)
what is the journal entry if goods (suppose in readymade shop employees take shirts and pants) taken by employees for their personal use how should I account. should i account them similar to proprietor taking goods for his personal use
because this reduces my stock as well. How should I account pls suggest me the whole process of entries
As per my knowledge if cash is given as Salary advance to employees we will post the below entries
Salary Advance a/c
To Bank A/c
Next is when salaries are paid it is
Salaries a/c
To Salary Advance
To Salary payable a/c
Pls suggest me for the goods taken by employees instead of cash.
Thanks and regards,
Ravi
CAclubindia
