Accounts Receivable

Current assets are different from current liabilities in this sense that current assets are usable in current fiscal year to generate revenue while current liabilities are all those amount or items which are already used in current fiscal year and amount is still payable in current year.

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Proforma Invoice is not a real invoice, it is simply a confirmation of the purchase order before shipment of goods. Commercial invoice is what the vendor bills you after the goods have been delivered. Hence proforma invoice is not recorded as a liability on the books while the commercial invoice is.

Many times, before establishing a credit relationship with the vendor, the vendor will present a Proforma invoice to request a payment in advance (PIA) before shipping the order.

Current Asset

The remaining costs, referred to as indirect costs, would be accumulated into one or more cost pools, which would subsequently be allocated to the cost objects according to volume-related bases of allocation.

Revenues are recorded when the sale transaction is complete, not when the customer makes payment, but management must then estimate what proportion of those credit sales will not be collected in the future.

there is about 500

Pledged accounts receivable, also known as accounts receivable financing, is a type of secured short-term loan whereby the debt is recorded in the financial institution's accounts receivables account.

debit to cash and credit to accounts receivable

It means that you have 90 days to pay the invoice, and if it is paid within 10 days, you receive a 3.45% discount on the original invoice amount.

Normally it's 5 years with equal amounts each year so it's similar to straight line depreciation except at the end of the 5 years the asset will not be shown on the balance sheet sheet at all.

Do not use short forms or initials for anything what is plain to one person is meaningless to another. Get out of the accounting and bookkeeping business if you cannot tell the difference between and expense and a liability.

yes

Is Current Ratio

Sundry debtors come in current assets because normally goods are sold on credit for short term agreement for one month or for three months as amount is receivable from debtors within one fiscal year that’s why debtors arrive in current assets.

If they are due to be redeemed within the year then yes, otherwise they would be non-current liabilities.

No,Capital is owner's equity i,e owner's contribution to business.

No, the phrase "cash on demand" is not a standard term for accounts payable in accounting terminology. Cash on demand is a term used when using payday loans or other types of loaning operations. It is typically a high interest, quick payback loan.

The only different is when the liability becomes due. So current liabilities are within a year and non current is after one year.

Current liabilities would be things like Corporation tax, VAT, payroll taxes, trade creditors (accounts payable).

Non current liabilities could be things like long term loans, long term debentures, hire purchase schemes.

With long term liabilities, there may be an aspect of it that's due within a year and the rest in later years, such as for instance, a 4 year Loan. In that case you would show 1 year in current liability and 3 years in non current liability. This allowes users to see actually what is due in one year.

By Cash a/c dr. 5000

By Tds receivable a/c dr. 500

To Debtors a/c cr. 5500

Accounts receivables relates to credit customers (debtors). Although somebody in the accounts receivables department will probably deal with anything relating to sales through to debt collection.

Yes, it is based upon the principle that the longer an account is overdue, the higher is the risk of nonpayment.