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Journal Entry for Advance Payable

16791 views 16 replies
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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
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On 17 November 2020 at 19:53 Report
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.

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Accountant
3662 Points Posted on 17 November 2020
No

Advance to (Name of Person) A/c Dr.
To Bank
9 Reply
On 17 November 2020 at 20:19
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Kota
259 Points Posted on 17 November 2020
But payment will be done by rtgs mode so advance should be due than paid
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On 17 November 2020 at 20:28
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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
9 Reply
On 17 November 2020 at 20:37
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Kota
259 Points Posted on 17 November 2020
Advance dene se pahle advance payable ki entry karni hai woh punch raha hoon?
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On 17 November 2020 at 20:44
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Accountant
3662 Points Posted on 17 November 2020
Not need to pass payable entry only payment entry required
9 Reply
On 17 November 2020 at 20:46
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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?
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On 17 November 2020 at 20:49
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Accountant
3662 Points Posted on 17 November 2020
Ab tum party ko bill ke against payment karna chate ho
9 Reply
On 17 November 2020 at 21:26
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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
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On 17 November 2020 at 21:33
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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)
9 Reply
On 17 November 2020 at 21:46
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Profession Business
28202 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.
44 Reply
On 18 November 2020 at 07:00
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1240 Points Posted on 18 November 2020
What should be a journal entry for 'advance received against sales'?
3 Reply
On 18 November 2020 at 15:28
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Profession Business
28202 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.
44 Reply
On 18 November 2020 at 17:58
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Accountant
3662 Points Posted on 19 November 2020
When advance received

Cash / Bank A/c Dr.
To Advance received from Debtors A/c
9 Reply
On 19 November 2020 at 08:30
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Profession Business
28202 Points Posted on 19 November 2020
Cash /bank dr.
advance received from debtors cr.
balance sheet


It will be shown under
Current liabilities
44 Reply
On 19 November 2020 at 08:45


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