LEDGER ACCOUNT

This query is : Resolved

SHARATH CHANDRA KUMAR (Querist)
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04 July 2010 I have doubt in cash book

Example : whenever we give advance payment to X Person Rs.10,000/- what entry we have to pass in payment voucher.
when we create X person ledger a/c,what group we have to take.
For buildings -we take Fixed assets as group.
now for this X person what we have to take?

CMA Ramesh Krishnan

CMA Ramesh Krishnan (Expert)
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04 July 2010 For paying advance you Debit the Person and credit Cash

For advance given person if Vendor you can group under sundry creditors liablity

For advance given some other persons like employee you group under Loans and advances asset

Rahul Gupta

Rahul Gupta (Expert)
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04 July 2010 On Payment
X Person........DR
to Bank.....Cr

X person can be gouped under other debtors for Fixed Assets under current assets.

Else, instead of X person account you can also make account named as "Advance against Fixed Asset" and group it under Current Assets.

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