1) Received advance Rs 5,000 4m sumit against an order for Rs 30,000.
2) supplied goods to sumit.
6 Replies
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 13 October 2013
At the time of advance:
Bank A/C Dr. 5,000
Sumit (or Advances from Sumit) Cr. 5,000
At the time of supply of goods:
Sumit Dr. 30,000
Sales Cr. 30,000
Neelesh Choudhary
(business)
(57 Points)
Replied 13 October 2013
Advance 4m sumit A/c comes under current liabilities..??
Mr.C.A
(ipcc)
(173 Points)
Replied 13 October 2013
liability shows all credit balance ,
ex:
bank a/c dr. xx
to loan a/c cr. xx
under liability side :
loan xx...........
so with that
Assest shows debit balance coz " debit all expenses and loses " Nominal account
Liability shows credit balance coz " credit all income and gain " + if __ like is a liability then it comes cr. side
loan is liability/responsibility
whereas " Advance amount " extra amount received is not our assest / we are not the owner of it so it is our responsibility to give it back to him , so advance comes under liability side
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 14 October 2013
| Originally posted by : @ !.$.P. | ||
 |
1. Cash/ bank a/c dr 5k To sumit adv a/c 5k 2. Sumit adv a/c Dr 5k sumit drs a/c Dr 25k To sales a/c 30k |
 |
Completely agree
Shikha
(Student CA Final )
(37 Points)
Replied 15 October 2013
First of all Agreeing to all of above experts' comments,
I wanna say,
I f You want detailed entry, ther ought to be following accounts opened
1. Bank A/c or Cash A/c
2. Advance from Sumit A/c - Under Current Liab.
3. Sumit A/c - Under S. Debtors
4. Sales or Goods A/c.
Journal Entries will be,
1. Bank/Cash A/c ....Dr. Rs.5000/-
TO Advance from Sumit A/c ...Rs.5000/-
2. Sumit's A/c ....Dr. Rs.30000/-
TO Sales/Goods A/c.....Rs.30000/-
3. Advance from Sumit A/c ... Dr. Rs.5000/-
TO Sumit A/c......................Rs.5000/-
(Being Adv. Recd from sumit Adjusted against His dues)
...PS- Correct me if Im wrong...
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