1) Received advance Rs 5,000 4m sumit against an order for Rs 30,000.
2) supplied goods to sumit.
Neelesh Choudhary (business) (57 Points)
13 October 20131) Received advance Rs 5,000 4m sumit against an order for Rs 30,000.
2) supplied goods to sumit.
Sumit Grover
(Chartered Accountant )
(3652 Points)
Replied 13 October 2013
At the time of advance:
Bank A/C Dr. 5,000
Sumit (or Advances from Sumit) Cr. 5,000
At the time of supply of goods:
Sumit Dr. 30,000
Sales Cr. 30,000
Neelesh Choudhary
(business)
(57 Points)
Replied 13 October 2013
Mr.C.A
(ipcc)
(173 Points)
Replied 13 October 2013
liability shows all credit balance ,
ex:
bank a/c dr. xx
to loan a/c cr. xx
under liability side :
loan xx...........
so with that
Assest shows debit balance coz " debit all expenses and loses " Nominal account
Liability shows credit balance coz " credit all income and gain " + if __ like is a liability then it comes cr. side
loan is liability/responsibility
whereas " Advance amount " extra amount received is not our assest / we are not the owner of it so it is our responsibility to give it back to him , so advance comes under liability side
*RENU SINGH *
(✩ §m!ℓ!ñġ €ม€§ fℓม!ñġ ђ♪gђ✩ )
(21627 Points)
Replied 14 October 2013
| Originally posted by : @ !.$.P. | ||
 |
1. Cash/ bank a/c dr 5k To sumit adv a/c 5k 2. Sumit adv a/c Dr 5k sumit drs a/c Dr 25k To sales a/c 30k |
 |
Shikha
(Student CA Final )
(37 Points)
Replied 15 October 2013
First of all Agreeing to all of above experts' comments,
I wanna say,
I f You want detailed entry, ther ought to be following accounts opened
1. Bank A/c or Cash A/c
2. Advance from Sumit A/c - Under Current Liab.
3. Sumit A/c - Under S. Debtors
4. Sales or Goods A/c.
Journal Entries will be,
1. Bank/Cash A/c ....Dr. Rs.5000/-
TO Advance from Sumit A/c ...Rs.5000/-
2. Sumit's A/c ....Dr. Rs.30000/-
TO Sales/Goods A/c.....Rs.30000/-
3. Advance from Sumit A/c ... Dr. Rs.5000/-
TO Sumit A/c......................Rs.5000/-
(Being Adv. Recd from sumit Adjusted against His dues)
...PS- Correct me if Im wrong...
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