Construction

Subcontractor Advance Payment

Paying a specialist subcontractor an advance to mobilize and procure materials.

Account NameTypeDebit ($)Credit ($)
Advances to SubcontractorsAsset (+)30,000.00-
Cash in BankAsset (-)-30,000.00

💡 Accountant's Note

Subcontractor advances are assets until the work is performed. They are recovered by deducting from future payment certificates — similar to how client advances are recovered.

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