hi frnds,i have a small problem as folows
iam working as accountant for two months ihave a doubt regarding expenditure of addvt
according to my business nature we have to give add some times
we offer one party in a month and another party in another month, but payment made after two or three months for each party.
now can i treat that each party as a creditor while passing J.V , or
is it right to give credit for advt exp payable.
YOU MAY treat each party as a creditor while passing J.V
| Originally posted by :prasanth | ||
| " | hi frnds,i have a small problem as folows iam working as accountant for two months ihave a doubt regarding expenditure of addvt according to my business nature we have to give add some times we offer one party in a month and another party in another month, but payment made after two or three months for each party. now can i treat that each party as a creditor while passing J.V , or is it right to give credit for advt exp payable. |
" |
you may treat each party as creditors, under the gropu of creditors for exp. under sundry creditors head.
you can treat them as creditors for expenses
I support Devanshi, treating them a party shall not be justifibale(although it is not incorrect)
and advetisement payable should be used when advertisement expenses outstanding is a continous phenomenon, as u said some time your enterprise need to give Add, crediting Advertisement Payble will not appear good(although not wrong)
if you are using tally then create group in other liabilities ---------liability for expenses-----and open each party ledger under this head
in manual accounting mr -manmohan is right
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