|Originally posted by : Pramod Kumar B.K.
Dear CAclubindia users,
Please solve the following query
How to treat advance paid to creditors and advance received from debtors ?
In the following conditions:
1) In accounts i.e. (how to show in balance sheet)
2) In case of calculating 'Drawing Power' when banks providing Cash credit or Over draft facility or renewal of the same.
Thanking you in advance.
Thanks to one and all for solving my previous query.
Here I have another query which is continuation of my previous question No. 2nd.
Which of the following will have better presentation while calculating DP?
Whether advance paid to creditors should be deducted from total 'Creditors' of a company
Should be added to total debtors
Since while calculating DP there are only chances of Stock, debtors, Creditors, whatever we adjust, it should be adjusted within above said.
Also for ‘advance received form ‘debtors’
Thanks in Advance !!