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How can be adjusted advances in the next year, shown at
liabilities side in last year balance sheet (these advances
in the name of unreal persons). status of firm - Pvt. Ltd.
Company . Nature of business is automobile service.
industry.
suggest me
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Answer Posted / ramesh kumar
Debit - Provision for Advances A/c Dr.
credit- TATA motors Prt Ltd A/c Cr.
if we receive advances against TATA motors we can adjust the
credit sales or otherwise if any any item sold to customer
below entry applicable
Debit - Provision for Advances A/c Dr.
Credit - Sales a/c cr.
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