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Interest received in advance is liability of business till the time it is actually earned by business.
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∙ 9y ago
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Are Advance paid a current asset or current liability?
advance paid is current asset and advance received is current liability.
What is unearned rent?
It is the rent which u have received in advance. . . . It is a liability for you. . . .got it. . . . . . !
Is unearned revenue a current liability when advance payment received for construction work?
no
Cash received in advance what is journal entry?
income received in advanceincome a/c drTo income received in advance A/Cso i think herecash ac drto cash received in advance i am not sure better check with some expertsincome received in adv is a liability and shown on liabilityu side in balance sheet.
Is a customer deposit a current liability?
Yes, customer deposits is that amount which is received in advance for the services in future.
Are Advance paid a current asset or current liability?
advance paid is current asset and advance received is current liability.
What is unearned rent?
It is the rent which u have received in advance. . . . It is a liability for you. . . .got it. . . . . . !
Is unearned revenue a current liability when advance payment received for construction work?
no
Cash received in advance what is journal entry?
income received in advanceincome a/c drTo income received in advance A/Cso i think herecash ac drto cash received in advance i am not sure better check with some expertsincome received in adv is a liability and shown on liabilityu side in balance sheet.
Is a customer deposit a current liability?
Yes, customer deposits is that amount which is received in advance for the services in future.
What is the liability created by receiving the revenue in advance?
Depends on the nature of the revenue received. Usually unearned revenue, customer advances, contract revenue in advance.
What are examples of income received in advance?
a good example would be rent income that has been received in advance another example would be membership fees etc... thr income received in advance is seen as a liability because it is money that does not correlate to that specific accounting or business year but rather for one that is still to come. the income account will then be credited to the income received in advance account and the income received in advance will be debited to the income account such as rent. When the time period for which the money was received comes, then a reversal takes place which is the same only differing by now debiting the income account to income received in advance account and vice versa.
When is unearned revenue recognized in the financial statements?
What types of industries have unearned revenue? Why is unearned revenue considered a liability? When is the unearned revenue recognized in the financial statements Is a church a company that could have unearned revenue?
Where wiil disclosed unearned income in balance sheet?
Unearned income is type of income which we actually has received from client but not yet earned that's why it is liability of company and shown at liability side of balance sheet. For Example: Advance received for sale of 100 units of $10 each. Untill company not transferred the goods to buyer it is our liability and not income yet.
How do you treat interest on advance payment of tax in financial statements?
there is no interest on advance payment of tax
What is the journal entry if i received 10000 as a interest income and 10 percent percent advance income tax paid?
debit cash 9000debit tax 1000credit interest income 10000
What is income received in advance?
Income received in advance means that amount form customer is received in advance with promise of goods delivery at some future time.
