Advances to Local Suppliers

Account Information

Account Type	Statement of Financial Position
Normal Balance	Debit

Amounts paid in advance to local suppliers before receiving goods

Pay advance to local supplier

Dr. Advances to Local Suppliers
Cr. Bank Account

Settle advance on local goods receipt

Dr. Purchases
Cr. Advances to Local Suppliers

Recover advance from local supplier

Dr. Bank Account
Cr. Advances to Local Suppliers

Transfer advance between local suppliers

Dr. Advance New Supplier
Cr. Advance Old Supplier