Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

What is definition of deferred revenue and how you pass the journal entries in books?

user-image
Question added by Mahesh Babu Vallamachetty , Finance Officer , Rediffusion Dentsu Young & Rubicam Pvt.Ltd.,
Date Posted: 2014/06/05
Tranquilino Jr Rivera
by Tranquilino Jr Rivera , General Accountant , Enany Group of Companies

Deferred revenues are revenues received in advance for which services and or goods are to be provided to the customer at a later date. These are UNEARNED at the time of receipt and are considered liabilities. Once services and/or goods are provided to the customer, then these become earned and are transferred to the revenue account with an entry debiting UNEARNED/DEFERRED REVENUES and crediting the REVENUE account.

More Questions Like This