Our company is a trading co., we give advance payment to the suppliers for the purchase of material
ex:- abc ltd- supplier
Order value : 10000
Advance payment: 30% on order value i.e.3000/-
How to made entry for advance payment given.
As per my knowledge- i create new ledger- advance abc ltd., under current assets.Once we recd material
agst material we will adjust the payment. is it right?
Pls clarify...its urgent