UK Accounting for Wage Repayments


Joined
Jul 2, 2019
Messages
1
Reaction score
0
Country
United States
Hello,

A past employee is repaying wages that the employer overpaid over multiple years. The repayment is occurring over a 4 year period. I know the total amount the employee is going to repay.

How is this situation accounted for in the general ledger? I am thinking a receivable has to be established for the total amount that will be repaid, and the payments from the past employee are applied to the receivable. What I am not sure about is what account the credit goes to when setting up the receivable.
Dr Notes/Accounts Receivable $
Cr ??? $

Thank you in advance for your help.
 
Last edited by a moderator:
Ad

Advertisements

bklynboy

VIP Member
Joined
Oct 12, 2011
Messages
569
Reaction score
106
Country
United States
Salary expense where it originally was recorded
 

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Similar Threads

Accounting for loan repayments 1
Wages into two different accounts 1
Wages 8
Loan Repayment 6
repayment mortgage 4
Wages... 33
Dividend Repayment? 1
repayment obligations 2

Top