Hi cvsuren, please create an account under 'Current Assets' as the advance salary is Prepaid Expense. Then pass the expense voucher and select the account 'Advance Salary'.
How about cash received back towards Salary advance recovery??
If you are making Salary Advance, the journal entry will be as follows
Salary Advance Dr.
Cash or Bank Cr.
In case you are making advance payments to vendors, the journal entry will be as follows
Vendor Dr.
