Hello, my suggestion was that the advances received by the customer or the advances paid to the supplier should be recorded as a separate section rather than in the amount of customers and suppliers.
For example, I receive an advance of 15,000 from company A, it appears in my debtor -15,000, but in fact, this is my liability and should appear in my creditor.
Please explain if there is any way about this.
Thank you.
There are Guides answering your question.
This is accounting and maths 101 were minus as minus is a +. If it states -15,000 (minus) in a liability account (amounts you owe) then it is an Asset (follows from equity = assets - liabilities). So if in your case equity = assets - -15,000 it is actually equity = assets + 15,000.