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Journal Entry for Advance Payable

16887 views 16 replies

Mangal Singh Khinchi

Kota

259 Points Posted on 17 November 2020

I want to know is this entry correct for Advance payable to Someone. Because payment made through RTGS.
Utility A/c Dr.
Advance to Someone A/c Dr.
To Someone's A/c

Replies (16)

Quick Summary

Discussion on journal entry for advance payable. Correct entry is Advance to Party Dr. To Bank when payment is made. No need to pass advance payable separately. Later adjustment is done against bills by debiting party and crediting advance, with balance settled through bank payment.

JATINDER KUMAR

Accountant

3662 Points Posted on 17 November 2020

No

Advance to (Name of Person) A/c Dr.
To Bank

Mangal Singh Khinchi

Kota

259 Points Posted on 17 November 2020

But payment will be done by rtgs mode so advance should be due than paid

JATINDER KUMAR

Accountant

3662 Points Posted on 17 November 2020

Advance given by you to Party through RTGS transfer

Advance A/c Dr. (Under Group - Loan and Advances)

To Bank

Mangal Singh Khinchi

Kota

259 Points Posted on 17 November 2020

Advance dene se pahle advance payable ki entry karni hai woh punch raha hoon?

JATINDER KUMAR

Accountant

3662 Points Posted on 17 November 2020

Not need to pass payable entry only payment entry required

Mangal Singh Khinchi

Kota

259 Points Posted on 17 November 2020

Pahle ke due amount ke saath advance due karke ek saath payment karna hai isliye advance payable dikhayenge tabhi to ek saath payment kar paayenge kyonki single payment hua hai na ki alag-alag?

JATINDER KUMAR

Accountant

3662 Points Posted on 17 November 2020

Ab tum party ko bill ke against payment karna chate ho

Mangal Singh Khinchi

Kota

259 Points Posted on 17 November 2020

Bill ke against bhi payment dikhana chahte hain aur saath hi advance due karke RTGS Ke jariye dono ka ek saath payment dikhana chahte hain

JATINDER KUMAR

Accountant

3662 Points Posted on 17 November 2020

When advance given to party

Advance to Party A/c Dr
To Bank

When Bill Received from Party

Expenses A/c Dr.
To Party

When payment made against Bill

Party A/c Dr. (Bill amount)
To Advance to Party (Advance amount)
To Bank (Bal amount)

sabyasachi mukherjee

Profession Business

28207 Points Posted on 18 November 2020

Procedure of Advance payment and subsequent reflection in Balance Sheet and Pl .
creation of master in Ledger Accounts:
1. if it is a recurring transaction involving some lacs or thousands
create master.
otherwise not.
create party account in master in the software.

shahyar husain

1240 Points Posted on 18 November 2020

What should be a journal entry for 'advance received against sales'?

sabyasachi mukherjee

Profession Business

28207 Points Posted on 18 November 2020

This is in continuation with my previous reply
1.book the bill submitted by vendor
2. dr. relevant expenses
cr. party account
3. in case of advance given to party account.
dr. party account
cr. bank
4. while paying adjust for the balance.