Accounting Case Studies 07

Accounting Case Studies 07

𝗨𝗻𝗹𝗼𝗰𝗸 𝗬𝗼𝘂𝗿 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝗶𝗻𝗴 𝗮𝗻𝗱 𝗛𝗥 𝗖𝗮𝗿𝗲𝗲𝗿 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹!

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Five days back we gave a purchase order to ABM Ltd with 1 million in advance payment.
Today ABM issues an invoice for 10 million to us and we plan to set off the amount today by issuing 2 equal PDCs where one is due the coming month and the other is due the following month after.
Pass the journal entries for these transactions.

𝐀𝐜𝐜𝐨𝐮𝐧𝐭𝐢𝐧𝐠 𝐂𝐚𝐬𝐞 𝐒𝐭𝐮𝐝𝐢𝐞𝐬 – 𝟎𝟕

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