malarvannan (accounts executive) (133 Points)
07 July 2011Dear friends
Our company is a trading co., we give advance payment to the suppliers for the purchase of material
ex:- abc ltd- supplier
Order value : 10000
Advance payment: 30% on order value i.e.3000/-
How to made entry for advance payment given.
As per my knowledge- i create new ledger- advance abc ltd., under current assets.Once we recd material
agst material we will adjust the payment. is it right?
Pls clarify...its urgent
Regards
malarvannan.d
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 07 July 2011
abcltd, ac -- - - - - - - - -dr. 3000
to cash/ bank
(being sdvance paid)
CA ADITYA SHARMA
(CA IN PRACTICE )
(16719 Points)
Replied 07 July 2011
no need to create new ledger you can made payments in the abc ltd. ac. , as it is the account of creditor
Deepak Gupta
(CA Student)
(15922 Points)
Replied 07 July 2011
| Originally posted by : malarvannan | ||
 |
Dear friends Our company is a trading co., we give advance payment to the suppliers for the purchase of material ex:- abc ltd- supplier Order value : 10000 Advance payment: 30% on order value i.e.3000/- How to made entry for advance payment given. As per my knowledge- i create new ledger- advance abc ltd., under current assets.Once we recd material agst material we will adjust the payment. is it right? Pls clarify...its urgent Regards malarvannan.d |
 |
No need to create a separate advance payment ledger. Pass the following entry
1) For advance payment
Supplier A/c………..Dr
To Bank A/c
(Note for accounting in tally: Activate maintain bill by bill detail and select Advance under method of adjustment/Type of Reference)
.
2) For purchase of material
Purchase A/c……….Dr
To Supplier A/c
(Select Against Reference for method of adjustment/Type of Reference and select the advance payment voucher made earlier. Supplier account will automatically be adjusted and will show outstanding payable for the balance amount)
Indira Priyadarsini Kota
(Practice)
(590 Points)
Replied 29 January 2021
There is no need to create a seperate ledger account. The entry will be as follows:
ABC ltd a/c......Dr. 3000
To Bank 3000
At the time of actual transaction: Purchase a/c Dr. 10000
To Supplier 3000
To Bank 7000
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