Hi Can anybody help me as I need suggestion for advance payments entries with respect to cash.
If I have paid cash advance then how to keep the entries in accounts
3 Replies
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 26 August 2010
what is the purpose of advance
nandha
(Finance Executive)
(53 Points)
Replied 26 August 2010
Hi,
Example:
1) When Advance is given :
Dr Vendor/Person 100 xxxx
Cr Cash/Bank A/c xxxx 100
2) Once settlement is done:
Dr Expenses 100 xxx
Cr Vendor/Person xxx 100
Regards
Nandha
vinayak Parkar
(Accounts exe)
(92 Points)
Replied 26 August 2010
Thanks Nandha
But if i will journalise the expenses in the name of the person then the sequence of cash book entries will affect so can I reverse the advance entries
As a reversing entry :
ie Cash A/c Dr
To Persons Ac
and book expenses in cash book
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