Quicken & Other Budget/Accounting Software/Advance

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QUESTION: Hi,

The company pay employee A of $1000 for project advance expenses (project related expenses like train ticket, meal, transportation, minor site items etc).

I will record $1000 as accrual and record the actual cost of $550 when he came back with all the receipts.

There is a difference of $450 in the accrual. How do i make adjustment of this? Please let me know the entries.

ANSWER: The employee must either submit receipts,
refund the difference,
or pick up the remaining amount as wages in their paycheck.

If it is the owner,  you can code the difference to the
appropriate owner distribution account

Hope this helps,

Linda Saltz CPA
Advanced Certified QuickBooks Advisor
http://www.qalance.com

We sell and support QuickBooks Enterprise
http://www.qbalance.com/enterprise_quickbooks.htm

---------- FOLLOW-UP ----------

QUESTION: The employee did refund the difference, but how to do adjustment in the accrual since i recorded as $1000 instead of $550

Answer
Credit the account you placed the original advance for $1000
Debit the accounts applicable to the $550
Debit the cash in bank for the $450 deposit you made to the
  bank operating account.
Unless you deposited the money back into the petty cash drawer.
If so, Debit Petty cash for the $450

Linda Saltz CPA
Advanced Certified QuickBooks Advisor
http://www.qalance.com

We sell and support QuickBooks Enterprise
http://www.qbalance.com/enterprise_quickbooks.htm

Quicken & Other Budget/Accounting Software

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Linda Saltz, CPA, QBalance.com

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QuickBooks best practices, troubleshooting, accounting, tax We have over 70 pages of website content about QuickBooks tips, running a business, tax and business startup at http://www.qbalance.com

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Accountant and CPA over 20 years. Specializing in accounting software for over 12 years, Certified QuickBooks Pro Advisor, QuickBooks seminar instructor since 1997.
Producer of www.QBalance.com over 100 pages devoted to QuickBooks help and support and training for small business owners in tax and accounting issues.

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