Advance received from debtors is not taken as sales due to:
There are several reasons why advance received from debtors is not considered as sales. Let's explore these reasons in detail:

1. Conservatism concept:
The conservatism concept is a fundamental principle of accounting that suggests that when there are uncertainties or risks associated with recognizing revenues, it is prudent to be conservative and not overstate the financial position of the company. Recognizing advance receipts as sales can overstate the revenue and profitability of a company since the sale has not yet been completed. Therefore, to adhere to the conservatism concept, advance received from debtors is not considered as sales.

2. Accrual Concept:
The accrual concept states that revenues should be recognized when they are earned, regardless of when the cash is received. In the case of advance receipts, even though cash is received, the actual sale has not yet occurred. Until the sale is complete, revenue should not be recognized. By not considering the advance receipts as sales, the accrual concept is followed, ensuring that revenues are recognized when they are earned.

3. Money Measurement Concept:
The money measurement concept states that only transactions that can be expressed in monetary terms should be recorded in the financial statements. Advance receipts from debtors do not represent an actual sale transaction but rather an advance payment towards a future sale. Since the transaction does not have a direct monetary impact, it is not recognized as sales.

4. Nature of Advance Receipts:
Advance receipts from debtors are typically recorded as a liability on the balance sheet, indicating that the company has an obligation to fulfill in the future. Treating them as sales would not accurately reflect the financial position of the company and could lead to misleading financial statements.

Conclusion:
In conclusion, advance received from debtors is not taken as sales due to the conservatism concept, accrual concept, money measurement concept, and the nature of advance receipts. By not recognizing advance receipts as sales, the financial statements provide a more accurate representation of the company's financial position and adhere to the principles and concepts of accounting.

Accrual concept because they haven't got due till now