أنشئ حسابًا أو سجّل الدخول للانضمام إلى مجتمعك المهني.
A down payment received before it is earned is recorded with a debit to the current asset account Cash and a credit to the current liability account Customer Deposits. When the contract is completed, the account Customer Deposits will be debited for the amount of the down payment, the sale will be recorded with a credit, and Cash or Accounts Receivable will be debited.
DebitPrepaid Rent10,000 CreditCash10,000 DebitPrepaid Rent10,000 CreditCash10,000
hi,
there are 2 sections to your question
1. Customer Down Payment - i.e amount received in advance from your customer
(Usually based on proforma invoice)
Entry to be posted
Dr Bank
Cr Customer Advances A/c (Balance Sheet - Liabilities)
Once you have provided the necessary goods or service to the customer, you will issue a final invoice to the customer and accordingly move the entry from the advance to the Customer a/c
2.Vendor Down payment - i.e amount paid in advance to your supplier
Entry to be posted
Dr. Vendor Down Payment A/c (Balance Sheet - Asset)
Cr. Bank
Once you have received the necessary goods or service from the supplier, you will need a final invoice from the vendor and accordingly move the entry from the advance to the Vendor a/c
Debit the cash
Credit the Customer account
(for down payment received)
Debit receiver (Advance Payment A/c)
Credit the Cash account
(for advance payment)
Two journal entries are involved when we pay in advance on the point of view. They are:
هل تحتاج لمساعدة في كتابة سيرة ذاتية تحتوي على الكلمات الدلالية التي يبحث عنها أصحاب العمل؟