Please kindly guide me the following.
I have created a new account named Advances to Mr.Sam under current assets of balance sheet. It contains an amount of $1200
Now when i create a payslip and use this account in deduction , it creates the payslip right. I mean gross pay as $2000 and deduction having account (Advances to Mr.Sam) as $1200, it shows the remainder amount on Payslip as $800. It shows the wages and salaries account as $2000 , which is correct as well. However it does not reduce the amount of $1200 in the balance sheet on Advances.
As the correct accounting entry would be Dr.Wages and Salaries Expense $2000
Cr.Advances to Mr.Sam $1200
Note: I have paid the payslip via cash. The correct cash entry is also there of $800 but the advances still stand to $1200 they do not go to $0