Nagendran (development) 03 December 2009
hai friends,
i need to know how to handle the paid in advance to a supplier in accounts.
an example journal entry for paid in advance to a supplier
Ansari (ca final) 03 December 2009
At the time of advance payment
Loans/Advances A/c Dr.
To, Bank/cash A/c
At the time of Purchases
Purchases A/c Dr.
To, Suppliers A/c
At the time of payment
Supplier A/c Dr.
To, Loans/Advances A/c
To, Bank/cash A/c
-----------------------------------------------------------------------------------------------------------------------------
Loans/advances a/c shall b shown under Assets side of Balance Sheet.
However, u can also Dr. Suppliers A/c at the time of advance payment.
Nagendran (development) 03 December 2009
thanks for your reply friend...
i had one doubt...
actually suppliers will comes under the account head of "sundry creditor"
how can v write the journal as loans/advances
Ansari (ca final) 03 December 2009
Dr. the suppliers a/c at the time of advance payment
u can also open a new a/c as Suppliers (Advances) A/c.
Pranjal (Article) 04 December 2009
u may Debit suppliers a/c and credit bank or cash a/c with this effect supplier has debit balance and when purchase made than debit purchase a/c and credit supplier a/c. for ex. adv. paid 50000 to supplier. entry is
supplier A/c Dr. 50000
To Bank A/c 50000
purchase made for Rs 60000 than entry is
Purchase A/c Dr. 60000
To Supplier A/c 50000
To Bank / Cash 10000
in last the effect will be same.
Sachin Kumar (Account Executive) 23 April 2014
Advance paid to suppilier for printing & stationery Rs 1000 and remaining 15000 paid by cheque to supplier
please confirm the entry
Tanvi (Student) 17 April 2015
At the time of making advacnce :-
Advance a/c Dr. 1000
To Cash A/c 1000
Suppliers A/c Dr. 1000
To Advacnces A/c 1000
At the time of making Purchase :-
Purchase A/c Dr. 16000
To Supplier A/c 16000
At the time of making payment :-
Supplier A/c Dr. 15000
To Bank A/c 15000
chandra sekar (Manager-Accounts) 06 January 2016
when yu are paying advance agst purchases, don`t use A/C head " Loans and Advances", which belongs to group , Current Assets. YU can debit the supplier itself and adjust, when final payment made.
'
Srinivas Ch (Sr.Accountant) 28 January 2016
Tanvi I agree with you, But small & beautyful think is USING THE COST CENTER IN TALLY ON THE NAME OF SUPPIER WILL REFLECT THE ALL ENTRIES.
Neethi V. Kannanth (.) 20 January 2021
What is the journal entry for repayment of rental advance when a part of it is adjusted against rent and repairs and maintenance?
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