A staff member received an overpayment for his salary which needs to be allocated as a loan.
Do I capture the entry to Salaries and Wages and then pass a journal debiting the loan account and crediting Salaries and Wages
The loan amount has not been allocated to a loan account for him as yet
Hi Sheena. That sounds ok to me (but then I am not an accountant). I would assume that you would then reverse the process the following month.
Are you using a payroll program?
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