Hi All,
I have given 2000 Rupees advance for site operations to an engineer. but he has spent 300 Rupees extra on purchases.
Can any one help me how to adjust this extra expense of 300 Rupees in accounts or which Journal Entry i should pass.
Thank you for your cooperation and immediate response.
you have to passed these entries
(1) Engineer A/c 2000
To Cash / Bank A/c 2000
( At the time of payments to engineer)
(2) Purchase A/c ( Dr) 2300
To Engineer A/c 2000
To Cash/ Bank A/c 300
( At the time of purchase date)
Dear Veeru,
Thank you for your valuable response,
i want to show this whole amount of 2300 Advance to engineer as Advance in his account. like this below entries. Before recording Entry for this 2300, if i pass another Entrt as shown in (2).
Please correct me if i am wrong.
1) Purchase A/c 2000
Engineers A/C 2000 Cr
2) Engineers A/c 300 ( As Advance to Engineer)
Cash/ Bank A/c 300 Cr
3) Purchase A/c 300
Engineers A/c 300
| Originally posted by : Zaif | ||
 |
I have attached GL A/C File for your reference. |
 |
Ur cash balance won't match if u show fake entry of advance of Rs. 300/-. So the entry suggested by Veeru Sagar is appropriate.
dear Zaif
Cash never goes negative and as in ur excel sheet bcoz if u have not any cash in your cash book then how would you be able to expense that amount so that 1st you show the excess amount expensed by engineer received cash from engineer as advanceand after that show the entry of purchase....in such case ur cash will not be nagative and as i have suggest u the entry above case you can pass ...............
Keep in ur mind, cash book will never goes to Cr balance
Further,
(i) For Advance
Engineer Dr 2000
Cash/Bank Cr 2000
(ii) For Purchase
Expense/Purchase Dr 2300
Engineer Cr 2300
(iii) For Settlement
Engineer Dr 300
Cash/Bank Cr 300
CAclubindia
