Reversal of excess unbilled revenue

sakina (student) (77 Points)

19 June 2021

what is the journal entry to be passed for reversal of excess unbilled revenue recorded in previous year ?

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Asha Kanta Sharma (Manager - Finance & Accounts) (10524 Points)
Replied 20 June 2021

Deferred Revenue - Dr.

Revenue - Cr.

Hope this helps/

sakina (student) (77 Points)
Replied 20 June 2021

Thanks. but I need an entry for reversal... revenue was already credited to P&L last year

Asha Kanta Sharma (Manager - Finance & Accounts) (10524 Points)
Replied 20 June 2021

1. When you have revenue the below is the JV :

AR/Cash/Bank - Dr. 100

To Revenue - Cr. 100

2. To transfer part of Deferred to subsequent FY

Revenue - Dr. 50

Deferred Reveneu - Cr. 50

Now if you say that Deferred Revenue was Rs. 30 and by mistake we made an entry of Rs. 50

Then the JV given below should be used for reversal of excess Deferred Revenue Booked

Deferred Revenue - Dr. 20

Revenue - Cr. 20

Hope this helps.

Thanks

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