Payroll in GnuCash

[Jeremy Miller]

On Sat, Mar 6, 2010 at 19:24, MaxBarJr <mbarawid at yahoo.com> wrote:

>
> Scenario 1:  I have a small company and I use GnuCash for my business and
> payroll.  My question is, if an employee applies and get a Salary Cash
> Advance (this is the first time I am doing this), on what account should I
> treat this, Liability or Expenses?
>

Initial transaction: Debit an Asset account such as Notes Receivable and
credit Cash.  Liability and Expenses are unaffected.

If the advance will be paid back out from regular paychecks in lieu of cash,
then for each pay period: Debit Salary Expense, Credit Notes Receivable for
the portion used to pay back the advance, and Credit Cash for the actual
amount sent.


>
> Scenario 2:  I am the employee applying for the Cash Advance and I am using
> GnuCash for my personal finance transactions.  Should I use Expenses for my
> cash advance or Liability?
>

Initial transaction: Debit Cash and Credit Notes Payable.  Liability and
Expenses are unaffected.

If the advance will be paid back out from regular paychecks in lieu of cash,
then for each pay period: Debit Cash for any cash received, Debit Notes
Receivable for the portion used to pay back the advance, and Credit
Income:Salary for the total.