One is a liability and the other an asset.
The Fees Earned account is most commonly used in the services industry, where it contains billings for such services as tax consulting, auditing fees, and general consulting.
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
Interest received in advance is liability of business till the time it is actually earned by business.
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
One is a liability and the other an asset.
The Fees Earned account is most commonly used in the services industry, where it contains billings for such services as tax consulting, auditing fees, and general consulting.
Asset - Liability = Net Asset / Liability * Net Asset - When Asset is more than Liability * Net Liability - When Liability is more than Asset
Unearned revenue is liability until it is earned and shown under liability side of balance sheet.
Interest received in advance is liability of business till the time it is actually earned by business.
Not right away. When you record unearned fees or revenue it only hits the balance sheet. Ex: Debit- Cash or AR (Asset Account) Credit- Unearned Revenue (Liability) It is a liability until the revenue is earned in which case you then Debit: Unearned Revenue Credit: Revenue/Sales Account (finally and income statement account!)
yes It is an Asset, not a Liability.
as a customer fee is my expense so its goes under nominal a/c
asset
balance sheet as a current liability until it's earned, when you transfer the amount earned to revenue.
asset liability
Asset