interview question

It will be shown as a liability

Shown as Advance to Suppliers under Loans and Advances

Advances will be shown as a liability

Entry will be 

Cash/Bank A/c Dr

To Advance from Customer(Liability) a/c

In case you are receiver of the advance show it under Current Liabilities as Advance from Customer

If the advances are paid to Creditors then the entry will be

Advance a/c Dr

To Bank a/c

it will be treated as advance against supply                 

Dear all,

Any body tell me that what kinds of precautions are to be taken in minds while preparing a balance - sheet of a manufacturing company. what annextures & attachment are to be prepare for that.