how to handle paid in advance to a supplier

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

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        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.

 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

Dr.  the suppliers a/c at the time of advance payment

u can also open a new a/c as Suppliers (Advances) A/c.

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. 

Advance paid to suppilier for printing & stationery Rs 1000 and remaining 15000 paid by cheque to supplier

please confirm the entry

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

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.

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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.

What is the journal entry for repayment of rental advance when a part of it is adjusted against rent and repairs and maintenance?