Fees Receivable Journal Entry

What Is Fees Receivable / Fees Receivables Meaning / Fees Receivable Under Which Head

Fees Receivable is a fees receivable from clients to whom the company had already rendered the services but the payment against such services is still not received at the end of the accounting period. It is a current asset (on balance sheet) for the business as the business will get benefits for fees receivables against the services rendered. It is earned by the business but the payment is due from clients.

Fees Receivable Debit Or Credit

Fees Receivable has debit balance as it is a current account so it is also a positive or favorable for it. however, when we close it, we credit it. When it increases, we debit it and when it decreases or close out, we credit it which is unfavorable situation for it.

Fees Receivable Adjusting Entry

The adjusting entry to record fees receivable is shown below:

 

                           Fees Receivable a/c  XXX

                                                           Fees Received / Earned a/c XXX

 

                                                  (Fees Receivables for the Period)

When the company actually received the fees from clients, then we Reverse the above entry by recording Reversing Entry and then we record a normal entry for fees earned as shown below:

 

                                     Cash a/c / Bank a/c  XXX

 

                                                                    Fees Earned a/c  XXX

 

                                           (Fees Receivable for the Services Rendered)