Journal entries

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 November 2017 A new company got a project and received an advance 100,000/- from debtors, owner want to use this amount as capital introduces and he used this amount to purchasing machinery, raw material etc.
what is journal entries for income, capital and receivable.

Amol S Joglekar

Amol S Joglekar (Expert)
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14 November 2017 if the advance is received from debtor...
debit cash/ bank account
credit advance from debtor.
Please note that there is no any journal entry for the transactions like funds are received as advance from debtor but owner wants to show it as capital introduced by him. (Under such circumstances, the accountant should either educate the owner about accountancy or resign from the job)

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