Advance taken from project

This query is : Resolved

Akanksha Gupta (Querist)
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29 April 2016 HI all,
Pls tell me what will be the entry if I Have to give someone advance from the project money and how it can be settled?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 April 2016 Debit the advance against the name of person and credit the bank ac. When the person present the bill for work done deduct the advance and pay the balance.

Rupesh Jain

Rupesh Jain (Expert)
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29 April 2016 you pass the payment entry and after receiving the bill you make Dr to exp and credit to party a/c

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Akanksha Gupta

Akanksha Gupta (Querist)
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29 April 2016 eg- in a project I got 50000 for some work
now i want to give 20000 as an advance to some Party X.
Later he gives me bill of 22000. what shud be the entries for all the activities.