How is "advance" treated when calculating cost of materials consumed?
Is it closing-opening advance or opening-closing advance?

Solution
There could be opening advance as well as closing advance. We use the following method to calculate the cost of value consumed

Particulars	Amount
Amount paid for the material during the current year
Add: opening advance paid  for material
Add: opening cost of materials
Less: closing advance paid for material
Less: closing value of materials
Cost of materials consumed (purchase)

Above is the extract form only, to find the cost of materials consumed , when creditors value either opening or closing is not given