Non Refundable advance
This query is : Resolved
12 June 2017
What is the accounting treatment for non refundable advance received?
12 June 2017
it has to be expensed out then. Generally non-refundable advance is adjusted against provision of services of goods. So show it is advance paid for the time being. once the goods and services are received, adjust advance against payables for the goods and services. In case the advance is to be forfeited due to any reason, charge off the advance to P&L as advance forfeited.
12 June 2017
thank you Nikhil for ur reply
but I wanted to know what was the treatment for advance receipt
12 June 2017
Oh Oh. my bad! i read it wrong.
Just reverse the treatment for advance paid!. If it is non-refundable advance receipt against provision of goods and services to be supplied, then keep it is advance received from customer and knock it off against receivables once the goods/services are supplied. In case, the advance is to be forfeited on account of any condition, before supply of goods or services, move it miscellaneous incomes.
Just reverse the treatment for advance paid!. If it is non-refundable advance receipt against provision of goods and services to be supplied, then keep it is advance received from customer and knock it off against receivables once the goods/services are supplied. In case, the advance is to be forfeited on account of any condition, before supply of goods or services, move it miscellaneous incomes.
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