Employee Receivables
Definition: Amounts owed by employees
Scope:NarrowDifficulty:Easy
Amounts owed by employees
Common Journal Entries
| Account | Debit | Credit |
|---|---|---|
| 1. Cash advance to employee | ||
| $1,000 travel advance. | ||
| Employee ReceivablesAsset+ | $1,000 | |
| CashAsset− | $1,000 | |
| Asset shifts from cash to receivable. | ||
| 2. Deduct from payroll | ||
| $3,500 gross wages, $1,000 deducted for advance. | ||
| Salaries ExpenseExpense+ | $3,500 | |
| Employee ReceivablesAsset− | $1,000 | |
| CashAsset− | $2,500 | |
| Receivable cleared via payroll offset. | ||
| 3. Employee repays directly | ||
| Employee returns $1,000 in cash. | ||
| CashAsset+ | $1,000 | |
| Employee ReceivablesAsset− | $1,000 | |
| Receivable cleared. | ||
T-AccountsA visual representation of a ledger account shaped like the letter T. Left side shows debits, right side shows credits.
Employee ReceivablesEmployee ReceivablesAssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$1,000.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,000.00
$1,000.00
$1,000.00
CashAsset account. Debits increase the balance. Credits decrease the balance.AssetA resource owned by the business. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$1,000.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$1,000.00
$2,500.00
$2,500.00
Salaries ExpenseSalaries ExpenseExpenseA cost incurred in the process of earning revenue. Normal balance: debit. Debits increase, credits decrease.
DebitLeft side of a journal entry. Increases assets and expenses. Decreases liabilities, equity, and revenue.
$3,500.00
◀ Normal bal.
CreditRight side of a journal entry. Increases liabilities, equity, and revenue. Decreases assets and expenses.
$3,500.00
DurationShort & Long-Term
Related Subjects
Related
- Officer ReceivablesBoth are amounts owed by company insiders
- Non-Trade ReceivablesEmployee advances are classified as non-trade
Contrast
- Accounts ReceivableA/R is from customers; employee receivables from staff
- Trade ReceivablesEmployee advances are non-trade, not from core operations
External Links
- Accounts receivable — Wikipedia