Entry of advances (urgent)

Originally posted by : BILGRAK MARAK
	Hi can anyone help>> How to make entry the following in the cash book of a non-profit organisation. Issue a cheque of Rs. 76,000 to Fishery Dept as an advances to conduct trainings and demonstrations. note:- the dept. will submit the vouchers before march 2013 only...

hello,

you may show it as advance (assets) for time being & when you receives a bill book exps.

entries will be look like

i) Advances to Dept. Dr

   To Cash/Bank

ii)Exps Dr

  To advances to Department

you may conlsult more with  others  for your problem

Is the contract agreed for current financial year or does it apply or continue to the next financial year also. If for the current period, then the entries are as mentioned by Anand, if the contract last for the next year also, ie, after mar 31st 2013 too, then you may have to apportion the same across the period of contract. Till the period of contract exhausts, the respective portion of the amount needs to be treated as an Asset as prepaid expenses.