Personal advance payment of company expenses means that employees use personal funds to advance some expenses for the company, and when the company reimburses them, the employee needs to record these expenses in the accounting books. Below is my accounting treatment of company expenses paid by individuals and an example.
1. Accounting entries for employees to pay the company's daily expenses
When an employee advances personal funds to pay for the company's daily expenses, the following accounting entries need to be recorded:
Debit: Other receivables.
Credit: cash on hand bank deposits.
For example, the company needs to buy some office supplies, but the bank account balance is insufficient, and the employee advances the money and pays 100 yuan in advance.
The accounting entries are:
Debit: Other receivables 100
Credit: cash on hand Bank deposit 100
2. The company reimburses the expenses paid by the employees
When a company reimburses an employee for an expense, it needs to record the following accounting entries:
Borrow: Bank Deposits, Cash on Hand.
Credit: Other receivables.
For example, the company needs to reimburse the employee for the expenses advanced by the employee, totaling 200 yuan.
The accounting entries are:
Debit: Bank deposit cash on hand 200
Credit: Other receivables 200
3. Accounting treatment of travel expenses paid by employees during business trips
When an employee advances travel expenses during a business trip, the following accounting entries need to be recorded:
Borrow: Administrative Expenses - Travel Expenses.
Credit: Bank Deposits Cash on hand.
For example, an employee pays $300 in advance for travel expenses during a business trip.
The accounting entries are:
Borrow: Administrative Expenses - Travel Expenses 300
Credit: Bank Deposits Cash on hand 300
4. Reimburse the travel expenses paid by employees in advance
When a company reimburses an employee for travel expenses, it needs to record the following accounting entries::
Borrow: Bank Deposits, Cash on Hand.
Credit: Other Payables – Employees.
For example, the company reimburses the employee for 500 yuan in advance travel expenses.
The accounting entries are:
Debit: Bank Deposit Cash on hand 500
Credit: Other payables – 500 for employees
5. When paying reimbursement expenses
When a company pays a reimbursement expense, the following accounting entries need to be recorded:
Debit: Other Payables – Employees.
Credit: Bank Deposits Cash on hand.
For example, the company paid the employee for reimbursement totaling $800.
The accounting entries are:
Debit: Other payables – 800 for employees
Credit: Bank Deposits Cash on hand 800
To sum up: the accounting treatment of personal advance payment of company expenses mainly involves the following aspects: employees advance company expenses, the company reimburses employees for expenses advanced, employees advance travel expenses during business trips, companies reimburse employees for travel expenses, and pay reimbursement expenses. The above is an example of the accounting treatment of personal advance payment of company expenses, I hope it can help you. Bookkeeping