Accounts

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nilakantha (Querist)
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06 September 2012 I got a sum of Rs 5000 cheque for making office expenses on 10.08.2012 at the end of the month the total expenses where Rs 3485.If i will make an entry in tally then the expenses will be recorded in payment voucher as already an expenses in booked in the accounts. How it will compensate the receipts amount i.e. Rs 5000 can anybody help me what will be the treatment in the accounts.

Vineet

Vineet (Expert)
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07 September 2012 as far as my understanding in that case you can pass an entry of advance taken in the beginning of the month and with that amount you can do expenses.

advanced received account debit to 5000
xyz ac 5000

now while doing expenses

expense account debit to 4000
advance received 4000

1000 will be carry forward for next month and so on..