Advance entry treatment in tally

A/c entries 879 views 3 replies

Sirisha

Accountant

56 Points Joined June 2015

Respected Sir,

During this financial year we have not received budget from our Head Office at this same time we have to pay staff salaries. for this i have taken sum amount from my project incharge as advance and paid staff salaries. after one month i have received budget from our HO and returned advance to project incharge. please tell me what are the entries in tally for (I am confused whether it is Receiept / Journal entry for advance received and Payment / Journal entry for advance returned)

1. Advance Received from Project Incharge

2. Advance returned to Project Incharge

Thanking you

Sirisha

Replies (3)

Avinash Tripathi

CONSULTANT

118 Points Joined August 2009

I think there will be no problem in passing the enteries either through journal or receipt paymnt mode. Since cash was involved i would recommend receipt paymnt mode. The enteries will be as Cash/bank ac Dr To advance ( project incharge) ac Advance ( project incharge) ac Dr To cash/ bank

kanth

accountant

62 Points Joined November 2014

If adv recevied in a cash form then the entrys will be as follows. Cash a/c ..............Dr To,project in charge. (Being cash recevied from project incharge) After as usely cash bal will increases salaries a/c......Dr TO,cash a/c (Being salaries paid by cash) After you recevied cash from project incharge) Project incharge a/c.......Dr To,cash a/c (Being cash returened to project incharge) Thank and regards lakshmikanth (chakkakanth @ gmail.com)

kanth

accountant

62 Points Joined November 2014

If adv recevied in a cash form then the entrys will be as follows. (Cash a/c ..............Dr To,project in charge.) (Being cash recevied from project incharge) After as usely cash bal will increases. (salaries a/c......Dr TO,cash a/c) (Being salaries paid by cash) After you recevied cash from project incharge) (Project incharge a/c.......Dr To,cash a/c) (Being cash returened to project incharge) Thank and regards lakshmikanth (chakkakanth @ gmail.com)