AA-31-Respective Accounts Name Required To Record Expense Entries

Dear Nilugal Parsad Sir,

Thanks for detailed reply.

suppose, if advance receipt invoice is being issued 1st to customer then they release payment how will it be recorded ?

Actually my concern is that if advance invoice issued before receiving advance payment how we will record it ? 

If you gave advance receipt then you don't have to do anything. Or maybe you can for remembering the transaction you can make an 

Dr. Advance receipt

Cr. Proforma sales

And when the amount is received

Dr. Bank 

Cr. Receivables/advance receipt 

Five step revenue recognition doesn't have a treatment with proforma sales but you can record this transaction in proforma statements. This is not deferred revenue as well. 

Overheads canbe absorbed in full costing