Deposit Account Question: Download Questions PDF
What is Accounting for invoice in Advance and Arrears?
Answer:
Accounting for invoice in advance
a) Receivable A/c .....................Dr.
To Unearned revenue a/c
(when we raise the invoice with invoicing rule as advance)
b) Unearned Revenue A/c .............. Dr.
To Revenue A/c
(when we receive the payment, the number of journal entry (b) is depend upon the accounting rules which can be fixed or variable)
Accounting for invoice in arrears
a) Unbilled receivable a/c ....................Dr.
To Revenue a/c
(when we receive the payment of unbilled invoice, the number of journal entry (a) is depend upon the accounting rules which can be fixed or variable))
b) Receivable a/c .........................Dr.
To Unbilled receivable a/c
(when we raise the invoice, with invoicing rule arrears)
a) Receivable A/c .....................Dr.
To Unearned revenue a/c
(when we raise the invoice with invoicing rule as advance)
b) Unearned Revenue A/c .............. Dr.
To Revenue A/c
(when we receive the payment, the number of journal entry (b) is depend upon the accounting rules which can be fixed or variable)
Accounting for invoice in arrears
a) Unbilled receivable a/c ....................Dr.
To Revenue a/c
(when we receive the payment of unbilled invoice, the number of journal entry (a) is depend upon the accounting rules which can be fixed or variable))
b) Receivable a/c .........................Dr.
To Unbilled receivable a/c
(when we raise the invoice, with invoicing rule arrears)
Download Deposit Account Interview Questions And Answers
PDF
| Previous Question | Next Question |
| Explain What are value sets? | Do you know what is long term fixed deposit? |