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A company receives an advance payment for goods that are to be manufactured and delivered within 6 months?

The advance  payment should be reported in the company's balance sheet as a..

• deferred charge.

• contra asset account.

• current liability.

• non-current liability.

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Question ajoutée par Majid Wangade , Senior Accountant , KANTOUR LIMITED COMPANY ( Real Estate, Construction and Asset Management )
Date de publication: 2016/03/09
Ali Al Ayesh
par Ali Al Ayesh , Senior Accountant , AES Arabia LTD

The advance  payment should be reported as current liability in the company's balance sheet

Sayed Ahmed Hassan Eid Eid
par Sayed Ahmed Hassan Eid Eid , Senior Accountant , ALQadi Specialty Hospital (NMC)

current liability

because this amount as liability for customer up to receive goods  

Muhammad Usman Zubair
par Muhammad Usman Zubair , Manager Accounts -Projects , Bahria Town Construction Wing Phase-8

will be reported as Current Liability

Shameer Nazir Madari
par Shameer Nazir Madari , Assistant Finance Manager , METAL AND RECYCLING COMPANY K.S.C. (PUBLIC)

 

Advance payment received from customer is called as Unearned Revenues and if revenue is going to be earned within one year of receiving the advance, it will be reported as a CURRENT LIABILITY

SAJIN.T SAJIN.T
par SAJIN.T SAJIN.T , ACCOUNTANT , JBS & ASSOCIATES

IT IS A CURRENT LIABILITY, WITH IN 6 MONTH'S GOODS TO BE DELIVERED AND THE MONEY RECEIVED NOW IS A LIABILITTY

Ahmed Mohammed Eldidamony Mohammed Baioumy
par Ahmed Mohammed Eldidamony Mohammed Baioumy , Senior Internal Audit , UMM Salal Trading and Contracting

 the adv.payment  should be reported in balance sheet as current liability 

Aeisha Abdul Kader
par Aeisha Abdul Kader , Accountant / Professional Assistant , VM Apparel CC

It should be recorded as Deferred Income which is a current liability.

QASIM KHAN
par QASIM KHAN , Admin & Finance Assistant , English Ville Academy

current liability, the payment (cash) will make the part of asset after thes delivery of the product

 

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