Payroll

Accounting for reimbursed expenses requires two journal entries, the first is to record the expense and the liability to the employee, the second is to record the payment to the employee to clear the liability.

When an employee is given a cash advance to be recovered from future wages, this is recorded as a current asset of the business using a payroll advance journal entry.

Vacation entitlement which has been earned by an employee but has not been taken by the end of the accounting period, represents a liability to the business. The liability is recorded using a vacation accrual journal entry.