Answers!
Suppose hire charges payable to A Ltd Rs 10000
20% paid in advance
Entry for Advance
A Ltd Dr 2000
To BanK 2000
(A is under Loans and Advances Asset)
When Bill Recd of Hire Chages
Hire Charges/Rent Exp DR
To A
Balance Payment Recd
A Ltd Dr 8000
To BanK 8000
Comment
Answer the question...
Suppose hire charges payable to A Ltd Rs 10000
20% paid in advance
Entry for Advance
A Ltd Dr 2000
To BanK 2000
(A is under Loans and Advances Asset)
When Bill Recd of Hire Chages
Hire Charges/Rent Exp DR
To A
Balance Payment Recd
A Ltd Dr 8000
To BanK 8000
Comment