debtors

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

19 March 2010 Respected CLI member Sir,

How to adjust negative debtors and creditors if shown in books of account.

Thanks in advance

Jitender

Jitender (Expert)
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19 March 2010 find out the reasons for negative debtors & creditors. It could be non- accounting of sales/purchase or advance payments/receipts.

then adjust it accordingly.

CMA. CS. Sanjay Gupta

CMA. CS. Sanjay Gupta (Expert)
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20 March 2010 SHOW NEGATIVE DEBTORS AS ADVANCE FROM CUSTOMERS. &

SHOW DEBIT BALANCE IN CREDITORS AS ADVANCE TO SUPPLIERS.

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CA RAMESH KUMAR AHUJA

CA RAMESH KUMAR AHUJA (Expert)
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20 March 2010 Mr. Jitender and Mr. Sanjay, both have replied perfectly.
Step 1-Identify the reasons for negative Balances.

Step 2: If the balance outstanding is in the nature of advance received/given then adjust these as Advance from Customers(CL) and Advance to suppliers(Advances Recoverable)