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when does accounts receivable have a credit balance?
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Answer / h.s.sarda
if advance received from customers then it show credit
balance of customer a/c.
| Is This Answer Correct ? | 41 Yes | 10 No |
Answer / jason
Errors are the only reason this account would show a credit
balance. Some folks above noted they record advanced
payments as credits to AR. THIS IS NOT GAAP. You record
advance payments as a seperate account called unearned
revenue that is displayed as a liability on the balance
sheet, not a credit balance in the assets section.
| Is This Answer Correct ? | 26 Yes | 4 No |
Answer / jigar gajjar
Normally the receivable account shows debit balance but
when the amount is received in advacne then it shows a
credit balance
| Is This Answer Correct ? | 28 Yes | 9 No |
Answer / ammanna.s
1. When Customers/Clients Paid in Advance
2. When Customer payment is accounted before rasing invoice
3. When Custome Reurned the Goods Supplied
4. If there is Promotional Incentive creidit is given
after Customer Clears the dues
5. Error on accounting of Others Payments
6. If OurCustomer become supplier to us
| Is This Answer Correct ? | 17 Yes | 4 No |
Answer / nivedita paunikar
Accounts Receivable is the payment to be received from the
party / customer. When we receive any advance payment from
the party / customer for the services provided it shows
Credit Balance.
So. Accounts Receivable can have a credit balance only
when Advance payment is received from the party / customer.
| Is This Answer Correct ? | 17 Yes | 5 No |
Answer / harish markan
when payment made by customer is in excess as compared to
the value of material supplied by us or in case, if the
customer has made the advance payment and we have not
supplied the material.
| Is This Answer Correct ? | 8 Yes | 4 No |
Answer / vijayvardhan reddy a.
When we received amount is more than what we receivable
amount Or in case advance payment
| Is This Answer Correct ? | 1 Yes | 0 No |
If the amount is received & the Sales entry is not accounted
or accounted in another customer account this balance will
be shown in Credit Balance.
| Is This Answer Correct ? | 4 Yes | 5 No |
Answer / preet bedi
Accounts receivables are sundry debtors and usually have a debit balance.Now sometimes debtor fails to pay his amount partially or completely.The amount of debt which cannot be recovered from the debtor is called bad debt,now bad debts needs to be written off by passing following journal entry
Bad debts account Dr.
To sundry debtors
so sundry debtors shows credit balance.
Note: it is the entry posted in adjustment in final accounts.
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / arjunanag@rocketmail.com
1. if we received advanced payments.
2. we received interest.
at that time we show credit side.
| Is This Answer Correct ? | 2 Yes | 4 No |
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