Question:

I have advanced/loaned money to a staff member. I then deducted R226 from his salary payment the following month. Payments are made by bank transfer so the net amount appears on the bank statement. How do I show the repayment of R226 which we deducted from him?

Answer:

In Chart of Accounts create 2 accounts for your staff member. Loan Account - Staff Member and Salary Account - Staff Member. (Loan Account will be an Asset. Salary Account an expense.)

The amount loaned must be allocated to Loan Account - Staff Member.
When you pay the salary you pay a set amount eg. R 226.00 less than you should. The amount that goes through the bank is allocated to Salary - Staff Member.
You then have to go to JOURNALS/CLASSIC JOURNALS.( You would have to do a journal entry. Debit the Salaries account and Credit the Loan account.)

On the Debit Account side you choose Salary - Staff Member. On the Credit Account Side you choose Loan Account - Staff Member.
Description will be Loan Repayment. Choose the date that you paid the salary and the amount will be R226.00.

Double check by going to the Salary - Staff Member Account in General Ledger. Check the Financial reports as well. You should see the Loan amount coming down each month.