Menu
management accounts
how rent received in advance would be considered as current liability
Replies (5)
because its not accrued income and hence may be payable before its actual due date of payment
didn't got logic behind this
Because it's not a income as not complete the transaction / rent.
I pay something to you in advance against which service interms of your building space utilization have not been availed yet.
So do u own the money yet?
You just the money in ur possession but do not own it unless the services of building are availed by tenant.
Hence a liability
Suppose, if you have received income in advance it means you have received the money but have either not delivered goods/service which you were supposed to provide. So even though you have received money you are still liable to provide goods/service. Hence that becomes your liability.
Recent Topics :
- FAI & FAST-DS 2026 query
- Is GST registration mandatory in this case
- Buying a residential flat in Goa: should my wife b
- Income tax filling
- Applicability of RCM in the case of import of serv
- Confusion in gst registration for service category
- Itc claimed from return defaulters
- Gst input credit
- CAN PARTNERSHIP FIRM SIGN SERVICE AGGREMENT WITH A
- E-waybill
Related Topics :
CAclubindia
