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Unearned revenue and deferred revenue are the two names of the same concept. It is the amount which is received from the customer but the product or the service is not yet delivered. The company record this cash payment as liability.
Example:
Ahmed has paid amount 60,000 to Bilal as the 6 month rent in advance for the house. 10,000 is one month rent. This amount is for the period Jan to June. considering this month as Jan, the amount 10,000 would be recorded as revenue and the remaining 50,000 would be recorded as unearned/deferred revenue.
Unearned revenue is a part of Balance sheet n deferred revenue is a liability because its link with revenue but not earned yet.
Both are same in nature... As both can be defined as the amount of revenue received in advance of providing goods or services. Both are treated as liablity and would be recorded in balance sheet as liability and when it will become earned same adjusting entry would be passed for both types i.e debit deferred (OR) unearned revenue account and credit the Sales revenue/Service revenue account.
Unearned revenue is the revenue which is not yet handed over to the recipient but is recorded in your balance sheet. Deferred revenue is a liability because it refers to revenue that has not yet been earned, but represents products or services that are owed to the customer.
Both are same which earned in advance to perform services and also for goods when services or goods provided it turn into earned revenue
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Unearned or Deferred Revenue is one & the same thing, It refers to the revenue that has been billed or collected but the related service has not yet been provided or the product has not yet been delivered, It is a liability account and is closed with revenue when the service/ product is delivered.
Examples:
Insurance Premium received in advance, Management Consultancy received in advance, Rent income received in advance
Recording:
The portion of Unearned or Deferred Revenue is closed with Revenue as and when the related Product/ Service is delivered & accepted
UN EARNED REVENUE-IT'S REVENUE FOR CURRENT ACTING F/Y
DEFERRED REVENUE-IT'S REVENUE FOR FUTURE/NEXT F/Y(LIABILITY A/C OF CURRENT F/Y)
Unearned Revenue & Deferred Revenue: Unearned revenue or deferred revenue may be defined which is receipt earlier against any service provide or handover any kind of product to be sold as on specific time .It's ultimately a liability for company composes at liability side of Balance Sheet. Sensation of time it may call by name as deferred or unearned revenue
Unearned Revenue & Deferred Revenue are Mostly One and the same depending upon the context of usage. It can be explained as follows.
It’s a form of revenue which cannot be considered on the Book of Accounts of a Company as revenue, Even though it’s called as a revenue, there is a liability statement that would be possibly attached to in the form of a service or product which is yet to be rendered to the recipient of the same, or the said revenue would have been received as an advance payment.
Both are a part of Balance Sheet Item. However, it depends on a company to choose which wording to be used either as a "Deferred Revenue" or "Unearned Revenue". Concept is same.
Mainly the Telecom sector uses Deferred Revenue.
