[joanna1]

How do I post the following:

One of our employee has a loan with the company outstanding £3200

His Invoice for May £3700 wich has been posted on SAGE

He is finishing with the company in a month, therefore I paid him only £500 from the bank which I recorded on SAGE as Bank/Supplier payment-£500. The outstanding Invoice shows £3200.

What journal entried do post to show that a loan is paid off and Invoice?

Thanks

[jerileycpa]

Hi Joanna, You use the term employee (which implies payroll expense) but then indicate that you made a payment of 500 as a supplier (which would not be payroll) so I'm confused. But I envision your transactions like this:

Receivable (employee) - 3200 Debit
Cash - 3200 Credit

Expense (the invoice) - 3700 Debit
Accounts payable - 3700 Credit

Accounts payable (the payment) - 500 Debit
Cash - 500 Credit

Was I close? Your closing JE then would be:

Accounts payable - 3200 Debit
Receivable - 3200 Credit

I'm not familiar with SAGE so I don't know how that would go exactly but that's how I would do it here in the US. Hope it helps. Cheers!