Classification of debtors
This query is : Resolved
20 October 2016
Some of my Customers pay me advance of goods. These advances are received both as Cash and deposits in Bank. Full Payment is received at the time of delivery of goods. For accounting purpose in which Group these Ledgers should be kept?
21 October 2016
Just book it as advance from Sundry Debtors in Current Assets, and at the time of full payment adjust the advance amount with the full and final settlement. One more thing u can do is just post an entry as receipt from Debtors(u can create advance ref. at the time of posting entry), and at time of full and final settlement, give the reference of the invoice, and adjust the amount of advance with full & final amount. by this way u r not required to create an advance ledger.
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