Finance
4545 Points
Joined September 2020
But rent received in advance for an existing customer
Dr. Bank
Cr. Rental income
When the due date is over shucks there is no entry and so its deferred revenue. So a bank can have a contra entry called advance bank payments
Dr. Advance bank account
Cr. Rental income
After due date
It can be
Dr. Bank
Cr. Advance bank account
Substance over form. Whats the difference? You already rented it and you didnt promise them good or service whilst you already provided it and received advance payment.
So deferred revenue is only for services which werent provided yet.