we give cash advances to our parties along with the product ,and send them accumulated bill.
e.g. 80000 (product)
and 20000 in cash.
total = 100000
party (debtor) pay us(total 100000) in our bank account.
now , how should I enter/settle this in tally.
pls help
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Cash Advance to debtors
Replies (20)
Why you give your Debtors advances?
yeah ques is wierd coz iv hardly seen this anywhere...plz tell that the cash which u give to your DEBTORS ..you give that from your business itself... I mean do u have any EXPLAINABLE source for that money??
i think black money is converted into white money.............????
black to white??????
means kacche ka pesa pakke main convert karna
it's pump ... and our clients are transporters , due to remote location sometimes we have to give their drivers needed cash , though small amount but have to, ... so how should that be settled in tally ??
I think you should record advances seperately and account for them as short term loans and advances otherwise tax implications will be attracted on whole 100000.
Thanks @ RivaArora ,
I know that, but such business runs this way, we can't help it.
the transporter is sitting in another city, trucks plying in others , Client transfers it to our account,
though we give them from our own cash sale's collection, but still problem persists ,as to how to settle it in tally ???
I know that, but such business runs this way, we can't help it.
the transporter is sitting in another city, trucks plying in others , Client transfers it to our account,
though we give them from our own cash sale's collection, but still problem persists ,as to how to settle it in tally ???
Plz clarify how do you want to account for that outflow if u dun want to show it as short term advances??accordingly i will suggest u its treatment..
it's a kind of short term advances , but the clients credit the amount in our bank accounts, now
for time being , I've entered it as a journal entry,debiting the debtor, and credited to temporary loan, but now when I received the whole amount in our bank , how should I settle that journal entry ??? that's my query
for time being , I've entered it as a journal entry,debiting the debtor, and credited to temporary loan, but now when I received the whole amount in our bank , how should I settle that journal entry ??? that's my query
As per your query your sellign your product of Rs.80000/- and giving Cash Rs.20000/- for some other purpose (transport)
In this case you have to Raise Invoice for Rs. 80000/- for your sale, and you have to book Rs.20000/- as advance paid and
you have to ask your debtor for that 20000/- freight invoice Either by collecting the same from transporter or from him.
If not able to do so. you can charge the rs.20000/- in your invoice as freight charges, but this will attract taxes.
Even if they credit whole amout in ur bank account u can segregate that ...m nt understanding the issue actually..in tally entries will be
1.SALE VOUCHER
Debtor 80000
To sale 80000
2.PAYMENT VOUCHER
Short term adv 20000
To cash 20000
3.RECEIPT VOUCHER
Bank 100000
To Debtor 80000
To short term advances 20000
moreover wait for some expert reply.
Also the borrower n lender should keep in mind sec 269SS,269T,269ST.
when paying cash, entry should be advance to debtors debit and cash should be credited, if risk and rewards are transferred then sale should be recorded to the amount of goods transferred....and when receiving 100000 entry should be bank dr and debtors credit (80000) and advabce to debtors crdit (20000)
@ RishiMehrotra but this way the closing balances of bank is getting affected.
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