An employee was given an advance of Rs 5,000 for travelling. He came back & claimed a total expense of Rs 8000. He was issued a cheque for balance, which of the following is correct?

Travelling expense shall be debited with Rs 8000

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Employee advance account shall be credited with Rs 5000 & bank account shall be credited with Rs 3000

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Travelling expense shall be credited with Rs 8000 & Employee advance account shall be debited with Rs 5000 & bank account shall be debited with Rs 3000

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A & B both

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Solution

The correct option is D
A & B both

The correct entry shall be:
Travelling Expense A/c Dr Rs 8,000
To Employee advance A/c Rs 5,000
To Bank A/c Rs 3,000

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