Cash advance paid entries

what is the purpose of advance

Hi,

Example:

1) When Advance is given :

   Dr Vendor/Person   100   xxxx

    Cr Cash/Bank A/c    xxxx    100

2) Once settlement is done:

Dr Expenses         100  xxx

Cr Vendor/Person  xxx      100

Regards

Nandha

Thanks Nandha

But if i will journalise the expenses in the name of the person then the sequence of cash book entries will affect so can I reverse the advance entries

As a reversing entry :

ie Cash A/c Dr

 To Persons Ac

and book expenses in cash book