Advance to employee or officer employee advance represents a cash payment loan made by the employer for the business expenses that are anticipated to be incurred by the employee or officer on behalf of the employer. This is due to the company has already paid the 5000 salary in advance on November 05 2020. Insurance Journal Entry For Different Types Of Insurance It is further shown under the head current asset in the balance sheet. . This adjustments if advance funds are made for services or items as a result of be supplied 12 months or more after the cost date. For example at the beginning of each month Company ABC advances 1000 to its sales manager John Smith for travel-related expenses. Later on July 7 when we receive the purchased goods we can make the journal entry to clear the advance. Professional Fees dr 10000. Because I did not receive the service from my employee. As a result journal entry for advance received fr