Bayt.com

Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is the entry when the company lends money to an employee?

Accounting Employee Relations Bookkeeping Human Resources Management HR Management
user-image
Question added by Michael Lagunday , Accounts Assistant , Invest Group Overseas LLC
Date Posted: 2015/07/29
Upvote (3) Views (12) Followers (9) Answers (6) Report Question
Write an Answer
Register now or log in to answer.
Abraham Varela
by Abraham Varela , Audit Manager , KPMG Auditores SL

Right. Loan to Employees is a financial asset and should be clasified as an other receviables account.

Irfan Aziz
by Irfan Aziz , Assistant Manager (Accounts and Tax) , Fist Security Private Limited

The Entry would be 

Loan to Employees          xxxxx

      Cash                                         xxxx

 

Rizwan Khalid
by Rizwan Khalid , Chief Accountant , Promedic Saudi Arabia

Employees Loan Account (Dr.)

Cash / Bank Account (Cr.)

Joseph Bukenya
by Joseph Bukenya , Accountant , Uganda NCD Alliance

Dr.  Salary advance (loan)

Cr. cash (Bank)

Saidul Alam
by Saidul Alam , Accountant , Akhtar Al Balushi Trad. & Cont. L.L.C

Dr. Employee loan a/c

Cr. Bank

Deleted user
by Deleted user

When a company lends money to one of its employees, the company will debit the asset account Loans to Employees and will credit the asset account Cash.

Write Your Answer
More Questions Like This