Question

in final accounts advances-Rs.2500 how will it be treated​

Answer 1

Answer:its depend on many things but i will tell you tell you the simple concept if you give advance to someone then its your assets and record as the nature of your advance(long or short term). or if you receive adv. then its your lib. and treat it as liab. ad nature of adv.  

Explanation:

Answer 2

Answer:

It is income received in advance and it is treated as asset and shown in the balance sheet liabilities side.

Explanation:

income received in advance and it is also shown in profit & loss account debit side or we can deduct the advance amount from the respective a/c in the p&l.

reason : It is not the income to be received in current period and we are liable to render services or send goods as we received the money in advance .