View Full Version : Accounts Payable Question
apm123
May 22, 2014, 11:36 AM
I had an employee use our account to fix their car, it was coded to our 7020 gl account. The company already has paid the invoice. Now she is going to pay the company back, how would I complete this action? Would I make a journal entry like follows, ( gl 1200 is an employee gl)
Would my journal entry look like this look like this:
7020 credit
1200 debit
Then
1000 (cash) debit
1200 credit
Is this correct?
paraclete
May 26, 2014, 09:23 PM
why is there a disparity in the amounts
Fidget1
May 27, 2014, 09:16 AM
There isn't - the 7020/1200/1000 is where it's being coded to rather than the amount.
The credit to 7020 will clear off the original debit and create the employee debtor, then the next will clear off the debtor and record the banking. So all in all the money goes back into the bank and clears off the accounts as if the transaction never happened.
Looks OK to me.
paraclete
May 28, 2014, 04:50 PM
I guess I'll have to brush up on my shorthand, accounting should not yield to pop culture where we abbreviate everything and expect others to understand what we are on about or go all the way and use abbreviations like dr and cr