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Journal entries for payment received in advance

4415 views 2 replies
Suppose, I deal in furniture, and received an order from ABC for supply of furniture for 10000 on 1st May, along with advance of 4000 in cash on that date. I supplied furniture on 5th May and raised a bill on ABC for rest amount. ABC paid me balance amount of 6000 on 10th May. How will I journalise all these transactions in my books of account?
Replies (2)
On 1st May

Cash Dr 4000
ABC Co. Cr 4000

5th May

ABC Dr 10000
Sales Cr 10000


10th May

Cash Dr 6000
ABC Cr 6000
for advance received below entry to be posted

cash Dr. 4000
To Advance Received. 4000

at the time of raising final bill

Cash Dr. 6000
Advance Rec'd 4000
To. Sales. 10000


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