if we receive advance from customer for sale ,then will it be recorded in books and if yes then why and how

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Question

if we receive advance from customer for sale ,then will it be
recorded in books and if yes then why and how

Manisha Arora · Accepted Answer

Dear Student, if advance is received from the customer for future
sale, then it will be recorded in the books as per the cash basis
of accounting According to which cash received is recorded in the
books irrespective of the fact that it is related to the
future/present or past

The Journal entry for cash received in advance is as follows

Journal

Date
Particulars
L F
Debit
Amount
(Rs)
Credit
Amount
(Rs)

Cash A/c
Dr

To Received in Advance A/c

(Cash received in advance)

Journal
Date	Particulars		L.F.	Debit Amount (Rs)	Credit Amount (Rs)

	Cash A/c	Dr.
	To Received in Advance A/c
	(Cash received in advance)