How to record transaction for advances from customers, sale and showing debtors in BS

You're seeking guidance on accounting entries for sales in a works contract services company. Currently, you're debiting the customer and crediting the Project Fixed amount (an asset account) when a contract is initiated. Then, when receiving advances, you're debiting cash and customer account, and crediting the respective accounts. For sales entries, consider the following: 1. _Recognize revenue_: Debit the Customer Account and credit the Sales Account (Revenue) when the sales transaction occurs. 2. _Use a Work-in-Progress (WIP) account_: Instead of crediting the Project Fixed amount, use a WIP account to track the progress of the project. This will help you match the revenue recognized with the expenses incurred. 3. _Record expenses_: Debit the respective expense accounts (e.g., Materials, Labor, Overheads) and credit the WIP account as expenses are incurred. 4. _Match revenue and expenses_: When the project is complete, match the revenue recognized with the expenses incurred (from the WIP account) to determine the profit or loss. 5. _Consider using a project accounting software_: This can help streamline your accounting processes and provide better project visibility.