Posting an expense?

ereid

Just revising and need to know how to post an advance on an expense, it is a cash advance recieved against computer equipment used for a sale. Not exactly an expense, not really an asset to the company, help please?:confused1:

Monsoon

It's going to be DR Bank (or DR Cash, if it is literally cash received) and CR wherever the money came from (whoever advanced it).

Then you would CR Bank/Cash and DR computer equipment when the money was used for purchasing.

Is that what you were looking for? :001_smile:


(In the back of my mind I am thinking that maybe they want you to allocate the money to some kind of reserve account which seems awfully long winded to my accountant-in-practice mind, and if that's the case, I'm not sure, but it's always a case of CR where the money came from and DR where the money is going, and if they want to see it in a separate account then make one aptly named. If I am waffling on about nothing, then ignore this rather long winded paragraph. Ironic? Night night :001_tt2:)