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Where is the revenue received in advance to go on balance sheet?

Where does revenue received in advance go on Balance Sheet?

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Question ajoutée par Siraj vannathamkandy , Senior Accountant , Gulf Business Center
Date de publication: 2013/09/01
Utilisateur supprimé
par Utilisateur supprimé

Revenue received in advance shall be disclosed under the current liabilites in the balance sheet. When the goods will be shipped or services rendered, this will be eliminated.

Rehan Qureshi
par Rehan Qureshi , Financial Consultant , Self Employeed

It is a simple liabilities (deferred revenue)

Hassan Abbas awan
par Hassan Abbas awan , Senior Accountant , Green Valley premium hyper maket

Current Liabilities under the head Advances from customer

Madhu Soodanan K. G. Menon
par Madhu Soodanan K. G. Menon , Financial Controller , Paras Properties Co. w.l.l.

Current Liabilities-Advances under execution.

Utilisateur supprimé
par Utilisateur supprimé

liabilities

ALLAH DITTA
par ALLAH DITTA , Accountant , Master Beverages & Food Limited

CURRENT LIABILITIES

 

Khaled Abdelrehim ACCA DipIFR CMA
par Khaled Abdelrehim ACCA DipIFR CMA , Financial Analysis Assistant General Manager , Khalda Petroleum Company

liabilities - deferred revenue

Marwan Kanaan, CPA
par Marwan Kanaan, CPA , Financial Manager , Al Huda for carton Printing and Manufacturing

It consider as Current Liabilities.

Ankit Gupta
par Ankit Gupta , Accounts and Commercial Assistant , Hayat Communication FZCO

Prepayments are expenses paid in advance and the unexpired up is accounted as current assets in the Balance Sheet. Vice versa, revenues received in advance are payment received from customers for work not yet done or goods to be delivered at some future date. So, they are actually liabilities to the business as the business has still not earned the revenue because goods or services have still not been provided to the customers.

 

Accounting Entries:-

1)Advance Invoice Entry For Example sale value of goods is $1000 and cost of goods is $800 and10% advance received from Customer. 

a)AR Dr…………………………………………………..$100

        Advance Received from Customer Cr…………………………..$100

b)Cash / Bank A/c Dr………………………………$100

        AR Cr……………………………………………………………………………..$100

 

2)Work done and goods delivered to the customer then Balance90% invoice Entry

a)Cost of Goods Sold Dr………………………...S800

        Advance Received from Customer Dr........….$100

        AR Dr…………………………………………….$900

        Sale Cr……………………………………………………………………………$1000

        Inventory Cr……......…………………………………………………………….…$800

b)Cash / Bank A/c Dr………………………………$900

        AR Cr……………………………………………………………………………..$900

 

Abdul Rahim Vattiyapuri
par Abdul Rahim Vattiyapuri , Group Finance Manager , HWH Hospitality Investments

Current Liabilities.

mukkur srinivasan varadhan
par mukkur srinivasan varadhan , Chartered Accountant , Chartered Accountant in practice

Liabilities.As mostly of short term in nature under current liabilities.

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