DEFFERED REVENUE MEANS CASH RECEIVED IN ADVANCE IN RESPECT OF A FUTURE INCOME. IT IS NOT RECORDED IN P&L A/C.IT IS SHOWN IN LIABILITIES SIDE AS - "UNEARNED INCOME".AN ADJUSTMENT ENTRY IS REQUIRED TO BE MADE WHEN THE INCOME IS EARNED.
ENTRIES:
1.FOR RECORDING AS UNEARNED INCOME
CASH/BANK A/C Dr.
TO UNEARNED INCOME A/C
2.ADJUSTMENT ENTRY
UNEARNED INCOME A/C Dr.
TO REVENUE A/C
DEFFERED REVENUE MEANS CASH RECEIVED IN ADVANCE IN RESPECT OF A FUTURE INCOME. IT IS NOT RECORDED IN P&L A/C.IT IS SHOWN IN LIABILITIES SIDE AS - "UNEARNED INCOME".AN ADJUSTMENT ENTRY IS REQUIRED TO BE MADE WHEN THE INCOME IS EARNED.
ENTRIES:
1.FOR RECORDING AS UNEARNED INCOME
CASH/BANK A/C Dr.
TO UNEARNED INCOME A/C
2.ADJUSTMENT ENTRY
UNEARNED INCOME A/C Dr.
TO REVENUE A/C
DEFFERED REVENUE MEANS CASH RECEIVED IN ADVANCE IN RESPECT OF A FUTURE INCOME. IT IS NOT RECORDED IN P&L A/C.IT IS SHOWN IN LIABILITIES SIDE AS - "UNEARNED INCOME".AN ADJUSTMENT ENTRY IS REQUIRED TO BE MADE WHEN THE INCOME IS EARNED.
ENTRIES:
1.FOR RECORDING AS UNEARNED INCOME
CASH/BANK A/C Dr.
TO UNEARNED INCOME A/C
2.ADJUSTMENT ENTRY
UNEARNED INCOME A/C Dr.
TO REVENUE A/C
DEFFERED REVENUE MEANS CASH RECEIVED IN ADVANCE IN RESPECT OF A FUTURE INCOME. IT IS NOT RECORDED IN P&L A/C.IT IS SHOWN IN LIABILITIES SIDE AS - "UNEARNED INCOME".AN ADJUSTMENT ENTRY IS REQUIRED TO BE MADE WHEN THE INCOME IS EARNED.
ENTRIES:
1.FOR RECORDING AS UNEARNED INCOME
CASH/BANK A/C Dr.
TO UNEARNED INCOME A/C
2.ADJUSTMENT ENTRY
UNEARNED INCOME A/C Dr.
TO REVENUE A/C
DEFFERED REVENUE MEANS CASH RECEIVED IN ADVANCE IN RESPECT OF A FUTURE INCOME. IT IS NOT RECORDED IN P&L A/C.IT IS SHOWN IN LIABILITIES SIDE AS - "UNEARNED INCOME".AN ADJUSTMENT ENTRY IS REQUIRED TO BE MADE WHEN THE INCOME IS EARNED.
ENTRIES:
1.FOR RECORDING AS UNEARNED INCOME
CASH/BANK A/C Dr.
TO UNEARNED INCOME A/C
2.ADJUSTMENT ENTRY
UNEARNED INCOME A/C Dr.
TO REVENUE A/C
DEFFERED REVENUE MEANS CASH RECEIVED IN ADVANCE IN RESPECT OF A FUTURE INCOME. IT IS NOT RECORDED IN P&L A/C.IT IS SHOWN IN LIABILITIES SIDE AS - "UNEARNED INCOME".AN ADJUSTMENT ENTRY IS REQUIRED TO BE MADE WHEN THE INCOME IS EARNED.
ENTRIES:
1.FOR RECORDING AS UNEARNED INCOME
CASH/BANK A/C Dr.
TO UNEARNED INCOME A/C
2.ADJUSTMENT ENTRY
UNEARNED INCOME A/C Dr.
TO REVENUE A/C
Being at first Instance one might had booked revenue i.e. Debtor A/c Dr
To Sale A/c
Bank A/c Dr
To Debtor A/c
Now for deferred revenue one need to pass below mentioned entry
Revenue A/c Dr...
To Deferred Revenue.
In Balance sheet, in case there is any debtor lying pertaining to deferred revenue, same need to be net off.
Being at first Instance one might had booked revenue i.e. Debtor A/c Dr
To Sale A/c
Bank A/c Dr
To Debtor A/c
Now for deferred revenue one need to pass below mentioned entry
Revenue A/c Dr...
To Deferred Revenue.
In Balance sheet, in case there is any debtor lying pertaining to deferred revenue, same need to be net off.
Hope this is clear. Please do comment.
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