Reimbursement of Expenses Accounting Treatment

Could you please tell me the treatment of tuition fee reimbursement for an employee's child in accounting?

Unni from Qatar

Dear Unni! Like this, there are lots of expenses which are paid by employees or someone and Reimbursed employer or businessman. If employee wants to record in his book, it will his advance or loan to company or business organisation. If business organisation wants to record in his books, it is still expenses payable but only party will change. Now, we come to its journal entry.

In the books of employee

1. For Payment of tuition fees as advance to employer. All other expenses which are given by employee will also advance

Advance to Employer (Tuition fees) Account Dr.

Cash Account Cr.

2. For reimbursement of expenses

Cash Account Dr.

Advance to Employer (Tuition fees) Account Cr.

In the Books of Employer 

1. When employee pays the tuition fee. 

Tuition Fees Expenses account Dr.

Advance from Employee Account Cr,

2. When employer reimburses to employee for his paid tuition fees.

Advance from Employee Account Dr.

Cash Account Cr.

Vinod Kumar

Educator

Prof. Vinod Kumar is an Indian Educator, Motivational Speaker, Naturopathic Practitioner and Entrepreneur . He is the founder of Svtuition... read more »

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