Advance paid to Employee 1000$. Employee incurred expenses of 800$ and he return

Advance paid to Employee 1000$. Employee incurred expenses of 800$ and he returned 200$. What is the Accounting Entry?

Question Posted / mahesh

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Advance paid to Employee 1000$. Employee incurred expenses of 800$ and he returned 200$. What is the..

Answer / saurabh parwal

1) AP Prepayment

Advance Dr. 1000
Liability Cr. 1000

Liabilty Dr. 1000
Bank Cr. 1000

2) AP Invoice:

Expense Dr. 800
Liability Cr. 800

3) AP Prepayment to Invoice application

Liability Dr. 800
Advance Cr. 800

4) AP Dummy Invoice

Clearing Account Dr. 200
Liability Cr. 200

5) AP Prepayment Application (to close the original prepayment)

Liability Account Dr. 200
Advance Account Cr. 200

6) AP credit memo

Liability Dr. 200
Clearing Account Cr. 200

7) AP Refund

Bank Dr. 200
Liability 200

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Advance paid to Employee 1000$. Employee incurred expenses of 800$ and he returned 200$. What is the..

Answer / raman

Prepayment/Advance Dr. 1000
Liability 1000

Liabilty Dr. 1000
Bank 1000

Expense Dr. 800
Liability 800

Liabilty Dr. 800
Prepayment/Advance 800

Prepare a credit memo
Liability Dr. 200
Prepayment/Advance 200

Bank Dr. 200
Liability 200