Outstanding Revenue Journal Entry

 

Outstanding Revenues or Outstanding Incomes are Current Assets for the company’s business as these are earned by the company but still the payment is not received against the services or facilities during the accounting period. These are due and receivables from the client to whom the company rendered the services. These are also known as Income Receivables or Revenue Receivables.

Examples include Rent Receivable, Fees Receivable, Professional Fees Receivable, School Fees Receivable, etc.

 

The adjusting entry for revenue receivables is shown below:

 

                                          Outstanding Revenue a/c  XXX

 

                                                                                 Revenue a/c  XXX

                                                     (Revenue Receivable for the Period)

For Final Accounts, the revenue receivable is recorded on Balance Sheet under current asset as it is receivable within one year. It is a permanent account and closed until it is fully received from clients.

When the company actually receives the full payment against income receivables, then the above entry is reversed and the company has zero balance for revenues / income receivables on balance sheet.