How to treate of advance from customers in tally 9

I try to tell the procedure of accounting treatment of advance from customers in tally 9 with solution of following query . I think this is the best procedure of treatment of advance from customers in tally 9

Question : We used to take advances from Customers for certain products which we don't have stock,when we got enough quantity of requisitions we order those.After receiving the stock we call Customers and they pay full amount and take there items.What will be the Entry and which Head these goes to?

Answer by Me

When you get advance , it is just like loan received by you before giving goods to your customers .

For this pass the journal entry

Bank or Cash Account Debit Rs .5000 ( For example )

Creditor account ( Give the name of person from whom you get advance money ) Credit Rs 5000

Because , you get cash and creditor is giver so creditor account must be credit .

If you are working on tally 9 then there is no need creating cash ledger because it is automatically created by tally 9
But you need to create Bank account , if you have gotten cheque . for this

Account Info and after this ledger and after this create bank account under bank account
and accept it
after this you can create creditor ledger ( for every person from whom you get money in advance ) under the head of Sundry Creditor or Loan and liabilities .and after this accept each creditor ledger .

You can same create it in Accounting Voucher by pressing short cut command Alt+ C

after this we you will give the goods to your customer , you have to open receipt voucher and then pass the voucher entry

Cash or bank Account Debit 1000 ( balance of sale value )
Creditor account Debit 5000 ( Tally automatically adjust this from your creditor accounts advance with sale value price )

Sale account credit 6000

I think , above tutorial will useful for accounting treatment of advance from customers in tally 9







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Accounting Education: How to treate of advance from customers in tally 9
How to treate of advance from customers in tally 9
Accounting Education
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