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Our company is in manufacturing stage and we had paid advance payment to several suppliers for some construction purposes. As manufacturing stage I want to treat it as Capital work in progress.So kindly advise how can we pass the entries for the same.
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Answer / raja halder
Suppliers a/c Dr ...... Advanced Payment
To bank a/c.......
Fixed asset a/c Dr....... Progress transaction
To Suppliers A/c
I think this is possible entry.
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