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GVen
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| Posted: 17 Apr 2011 at 08:43 | IP Logged
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Anyone done this problem from Beckers - are employee advances not shown net of accrued salaries payable if said advances are paid back via payroll deductions? Is there a principle about payables (or payroll specifically) that i'm missing here as to why it would work differently from, say, uncollectible rent or A/R allowance which are both contra's to the base asset account?
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Varshirone
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| Posted: 18 Apr 2011 at 00:57 | IP Logged
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Advances are separate from accrued salaries in that accrued salaries measure the "work" that was performed by an employee that is owed to them. The advance is just that, an advance to the employee. The company is just lending money to the employee and it just so happens they get paid back by taking it out of the employee's paycheck. Hope that helps.
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GVen
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| Posted: 18 Apr 2011 at 16:22 | IP Logged
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thanks for that...it does help!
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Topic: CPA-00619 employee advances
Topic Closed)
