Hi
I'm giving money to provide me services at the beginning of the period. This is I pay 1000/- money in advance to a grocery stores to get groceries for the month.
At the month end, nothing is left after consumption. Is this grocery store guy a sundry debtors or loans and advances?
Txs
@ Sabyasachi is bad that he studied less and rubab more.
https://www.wallstreetmojo.com/advance-payment/#:~:text=Advance%20payment%20is%20a%20payment,the%20goods%20or%20render%20services.
It appears on the assets side of the balance sheet as a prepaid expense for the buyer. Such advances are usually required when a buyer has defaulted payments in the past, so it protects the sellers from such unforeseen events, especially in the corporate world where the size of consignments is comparatively large.
These professional schools I've studied.
And you studied from a broken English text book like below
When Advance paid to supplier hat is current Asset as its our right to get deliver goods and service in future. Before going further we have to understand what is Advance paid through the accounting rule of assets and libilities as mention above table.
https://www.thevistaacademy.com/journal-entry-of-advance-received-from-customer-and-advance-paid-to-supplier/
this is where you studied.
if i drag you to the courts for bragging too much, you'll be debarred for processing rubbish to everyone here.
I think your a bpo employee chuckles
Let's assume it that way. I have a regular supplier who is payables.
Dr. Purchases 100
Cr. Creditor 100
At the time of payment
Dr. Creditor 100
Cr. Bank/Cash 100
If I overpayed the supplier by 100
Dr. Creditor 100
Dr. Current asset (loan or advances) 100
Cr. Bank 200
But my arrangement was just advance payment to avoid financial issues or frauds like the monio article covers.
Excess paid to suppliers and excess paid by debtors is what you mean. Anything excess paid by debtors is not advance
Dr. Receivables 100
Cr. Sales 100
And if the customer paid us 200
Dr. Bank 200
Cr receivables 100
Cr. Deferred liability 100
When the customer gets something worth that amount from us,
Dr. Deferred liability
Cr. Sales.
| Originally posted by : Yasaswi Gomes new | ||
 |
Excess paid to suppliers and excess paid by debtors is what you mean. Anything excess paid by debtors is not advance Dr. Receivables 100 Cr. Sales 100 And if the customer paid us 200 Dr. Bank 200 Cr receivables 100 Cr. Deferred liability 100 When the customer gets something worth that amount from us, Dr. Deferred liability Cr. Sales. |
 |
You are correct.
But, It's not possible to direct entry as "CURRENT ASSET & (/) CURRENT LIABILITY. Bcoz, In case the amount is uncleared or new staff then they can't find out the details.
So, It will adjust with JV as of Party Name_Under CURRENT ASSET & (/) CURRENT LIABILITY.
Dr. Receivables 100
Cr. Sales 100
And if the customer paid us 200
Dr. Bank 200
Cr Customer A/c 200
Agst Ref - 100
New Ref (or Advance) - 100
In case the excess amount not tallied in the end of the year then we can move with a JV like
Dr. Customer A/c - 100
Cr. Customer Name - 100 (as Advance from Customer - Under_Current liability).
The Same will follow Supplier Transactions under Current Asset.
Your correct I've created new masters and I don't even have to take permission from anyone cause if anything goes wrong I promised I'm responsible. JV, I like it but many ppl don't apart from managers and others feel it awkward. It's very good thing but it has its limitations like it can't process a pay to an employee. I don't f12 too many complexities but proficient user.
Oracle, sap forms vs tally, quick books ets. The functionality could be implemented. To me a big software and a small software mean the same cause everything runs by voucher number and date. Any controversies?
| Originally posted by : Yasaswi Gomes new | ||
|
Oracle, sap forms vs tally, quick books ets. The functionality could be implemented. To me a big software and a small software mean the same cause everything runs by voucher number and date. Any controversies? | |
means...?
We can use any Software(s) . But, Standards is standing as per Accounting.
Big (or Small) software can be blocked some of the process to the staffs except Managers/CEO/Any.
But, Finally entries can be make what we want....
Am I Right...???
| Originally posted by : RAJA P M | ||
|
Dr. Receivables 100 Cr. Sales 100 And if the customer paid us 200 Dr. Bank 200 Cr Customer A/c 200 Agst Ref - 100 New Ref (or Advance) - 100 In case the excess amount not tallied in the end of the year then we can move with a JV like Dr. Customer A/c - 100 Cr. Customer Name - 100 (as Advance from Customer - Under_Current liability). The Same will follow Supplier Transactions under Current Asset. |
|
@ Raja PM your correct! Some companies get tired to do against reference cause employees will be scared to remember the references. I also know the complete receivables process eg. Sales order- new reference, delivery note against reference, sales voucher against ref, and receipt against reference. But how is it possible to remember a reference with too many orders. So some choose against account.that is also giving outstanding balances.
| Originally posted by : Yasaswi Gomes new | ||
|
@ Raja PM your correct! Some companies get tired to do against reference cause employees will be scared to remember the references. I also know the complete receivables process eg. Sales order- new reference, delivery note against reference, sales voucher against ref, and receipt against reference. But how is it possible to remember a reference with too many orders. So some choose against account.that is also giving outstanding balances. | |
That's work. Staffs must be follow the references. Then Only it's going to smoothy with Suppliers and Customers.
Also in the finalization of Accounts.
CAclubindia
