I have read that deferred revenue is the advance that we have received.
e.g. if we have recd advance in the month of March for the goods that we are going to deliver in June isn't it called deferred revenue ?
so its our liability?
please advise
Menu
Deferred revenue
Replies (7)
yes advance that is received against future sale of goods is our current liability.it shud be deferred and shall be recognized as Income to revenue month on month
Yes deferred revenue is a liability
At the time of receiving a advance, we record the entry
Bank A/c Dr. xxx
To Def.Revenue xxx
When the product or services is delivered over time, it is recognised as revenue in income statement
Def.Revenue Dr. xxx
To Sale xxx
At the time of receiving a advance, we record the entry
Bank A/c Dr. xxx
To Def.Revenue xxx
When the product or services is delivered over time, it is recognised as revenue in income statement
Def.Revenue Dr. xxx
To Sale xxx
Thanks a lot
Deferred Revenue (current liability) is the advance recd for the services to be rendered in future
Deferred/Prepaid Expense (current asset) is the advance payment for the expenses to be incurred in future
But then if we read deferred revenue expenditure it's the expense which has been covered in an accounting period. Is it different than the first two concepts?
yes you are right
thank you
like Advertisement Exp.is a deferred revenue expenditure it will be amortised over the period
ok.all these concepts comes under M.com syllabus? i am asking as i havn't persuade post graduations.
Recent Topics :
- LTCG - SEC54
- Foreign remittance from our client for Co Working
- UDIN generation
- Reply plz guys
- Tax Deduction and Collection Account Number
- Where can students practice XAT PYQs effectively?
- Gst on Guest house 5% without ITC
- How do you collect documents from clients for ITR
- GST ITC on Construction/ Tenant Specific Renovatio
- GST Treatment and Reporting of Share & Mutual
CAclubindia
