Hi friends,
(Dr. Bal) in creditors a/c
Should it be shown as a -ve bal and shown under current liability
or it should be added to debtors and shown under current assets.
or both ways is right,
pls give reasons
Govind Rathore (CA Final) (543 Points)
26 August 2010Hi friends,
(Dr. Bal) in creditors a/c
Should it be shown as a -ve bal and shown under current liability
or it should be added to debtors and shown under current assets.
or both ways is right,
pls give reasons
sudhakar ca cwa
(service)
(1518 Points)
Replied 26 August 2010
first check why it is shown debit balance
whether it is an advance or any chance of misplacing the invoices r etc.
if it is advance then show it as advances from creditors under current assets
(do not add to debtors)
CA Navin Jain
(MANAGER (FINANCE & ACCOUNTS))
(11768 Points)
Replied 26 August 2010
it shall be shown as advnace to supllier under (Loans & Advances Assets)
Manikanta Raju CA,CWA,(CS)
(Industry)
(4482 Points)
Replied 26 August 2010
Should not be added to debtors, it should be shown unders loans and advances to suppliers/vendors
mehul kishnani
(student)
(264 Points)
Replied 26 August 2010
it should be shown under loans and advances to suppliers/vendors
CA Chirag Haraniya
(Chartered Accountant)
(902 Points)
Replied 26 August 2010
u shouldnt add to debtors.......... correct practice is to suppliers.........
Ankit rastogi
(c.a student)
(103 Points)
Replied 26 August 2010
-ve bal.of creditors is shown as -ve bal. in current liab and it can also be shown as advance to supplier as current assets but it can not be shown as sundry debtors
CA. BIJENDER KR. BANSAL
(ACA, B.COM)
(8148 Points)
Replied 26 August 2010
Correct way to shown it is Advance to Supplier under sub group Loan & Advances under Group Current Asset & Loan & Advances.
punit
(CA final)
(290 Points)
Replied 26 August 2010
hello govind,,,,dr bal in creditor account will be shown as advance in current assets.....when dr bal appear in our book that mean we have given advance against purchse...or suuply...so it be showb as advance against purchase in current assets