Question { Infogain, 8802 }
Advance paid to Employee 1000$. Employee incurred expenses
of 800$ and he returned 200$. What is the Accounting Entry?
Answer
Entry for Advance
prepaid expences....D/r
TO cash
Entry for Expenses Incurred
Employee exp A/c........D/R
To liability
Entry for Advance Adjustment
liability......D/R
To prepaid Expenses
for receiving remaining
Clearing a/c......D/R
to Prepaid Expenses
Cash A/c .....D/R
Clearing A/c