Hello Everyone,
If you receive the Annual service maintenance of Rs.12000 on 1st Dec 2019 for next period. Suppose your accounting period is 1st April to 31st March. When you will show this revenue as per matching concept principle. Can you please suggest me guys.
If you have received it as advance payment for future services, recognise deferred revenue liability, this falls under accruals. Then once the service is provided in the next year, recognise it as revenue.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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