Advance payment
This query is : Resolved
ramendra singh rana
(Querist)
03 October 2011
i am an accountant in a consultancy company
and we receive some advance amount and full amount after the placement of candidate but if the candidate is not placed we have to return the 75% of the amount.
what should be the accounting entry of the whole process.
and we receive some advance amount and full amount after the placement of candidate but if the candidate is not placed we have to return the 75% of the amount.
what should be the accounting entry of the whole process.
03 October 2011
Bank A/c Dr. 20,000
To XYZ Ltd. (Advances) 20,000
(Being advance received)
Bank A/c Dr. 80,000
XYZ Ltd. 20,000
To Consultancy Fees 1,00,000
(Being balance amount received)
Consultancy Fees A/c Dr. 75,000
To Bank A/c 75,000
To XYZ Ltd. (Advances) 20,000
(Being advance received)
Bank A/c Dr. 80,000
XYZ Ltd. 20,000
To Consultancy Fees 1,00,000
(Being balance amount received)
Consultancy Fees A/c Dr. 75,000
To Bank A/c 75,000
ACMA Obulirajan R
(Expert)
03 October 2011
Bank A/c Dr. 20,000
To XYZ Ltd. (Advances) 20,000
(Being advance received)
XYZ Ltd. 15,000 (75% of 20,000 refund)
To Consultancy Fees A/c Dr. 5,000
To Bank A/c 15,000
To XYZ Ltd. (Advances) 20,000
(Being advance received)
XYZ Ltd. 15,000 (75% of 20,000 refund)
To Consultancy Fees A/c Dr. 5,000
To Bank A/c 15,000
ACMA Obulirajan R
(Expert)
03 October 2011
Even you can split the entry like this:-
Bank A/c Dr. 20,000
To XYZ Ltd. (Advances) 20,000
(Being advance received)
XYZ Ltd. 15,000 (75% of 20,000 refund)
To Bank A/c 15,000
(Being the advance refunded)
XYZ Ltd. 5,000
To Consultancy Fees A/c Dr. 5,000
(Being fee received for consultancy)
Bank A/c Dr. 20,000
To XYZ Ltd. (Advances) 20,000
(Being advance received)
XYZ Ltd. 15,000 (75% of 20,000 refund)
To Bank A/c 15,000
(Being the advance refunded)
XYZ Ltd. 5,000
To Consultancy Fees A/c Dr. 5,000
(Being fee received for consultancy)
CA Pushpendra Gaur
(Expert)
05 October 2011
I completly agrees with the above reply by Obulirajan
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