Hi,
Just wanted to know this
I am preparing a Balance Sheet. Under Debtors, there are 2 accounts created for a party
1. Showing advance recieved
2. Recievable from Debtors
My client argues that i keep both these accounts seperately. Is there anything that states it should be stated seperately or merged whatever.
Please respond
Yes, Advances received from Customers should be stated and disclosed separately. It should be separately accounted. refer Schedule VI of Co.s Act, 56
If a debtor account have credit balance due to advance received from him it should be regrouped from debtors to creditors... and no separate disclosure required....
Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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