Entering advance entry in the books without paying them
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 June 2013
Hi Experts,
Just had a query, a company is entering advances in the name of vendor without intention to pay them off, what that means. the entry they are passing in books
Advance - Dr
To, Creditors.
Is this something suspicious
Just had a query, a company is entering advances in the name of vendor without intention to pay them off, what that means. the entry they are passing in books
Advance - Dr
To, Creditors.
Is this something suspicious
27 June 2013
To show huge advances from the customer,
Querist : Anonymous
Querist :
Anonymous
(Querist)
27 June 2013
But why ?
28 June 2013
Dear Querist
This is a typical case of window dressing. If the intention is not to pay then the company is building its assets may be with the intention of getting bank finance or with the intention of luring some equity investor since the balance sheet looks strong with big assets figures.
This is a typical case of window dressing. If the intention is not to pay then the company is building its assets may be with the intention of getting bank finance or with the intention of luring some equity investor since the balance sheet looks strong with big assets figures.
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