Balance Amount in vendor or Customer

amanpreet.singh

Hi all,
I posted an payment entry in a vendors ledger whose balance was nil i.e there was no entry earlier. Afer posting the payment entry the account was debited by, say Rs. 100000/-.
While looking towards the Balance amount on the Vendor Card the Amount being shown was negative i.e it is showing Credit Balance although after posted a payment entry it should show a Positive amount ie debit balance.
Please let me know if you are not able to get my point of view.

ara3n

The balance on vendor card is positive if you own them money and negative if they own you money. Same applies to customer. If it's positive, the customer owns you money and if it's negative, you own them.

amanpreet.singh

Thanks for Reply Rashed,
My doubt is still not clear.
What I wanted to ask is, when I paid Rs.100000/- to Vendor, his account is debited. In that case why it is showing negative Value in the Balance (LCY) on the vendor card? (You consider that I have given him Advance.)
What I understand is that if you give payment, the amount in the balance LCY on the card should be positive.
(Note: The Vendor is having only and only one entry i.e. entry for Rs.100000/- there are no other entries). In case there are other transactions in the ledger the balance will very as per the circumstances
.

ara3n

You are paying a Vendor, you are reducing his balance, thus his balance will be lowered (Negative).

You are confusing this with customer where a payment from customer increases the Balance.