Professional Fees Receivable Journal Entry

 

Professional fee is the fees receivable by professional services providers such as accountants, auditors, consultants, lawyers or attorneys doctors, etc. from his clients against the services rendered to them during the accounting period. It is a current asset as it is receivable by professionals from his clients within one year or less than one year for the services rendered but still the payment is not received from clients.

 

The adjusting entry to record professional fees receivable is shown below:

 

             Professional Fees Receivables a/c  XXX

 

                                                                  Professional Fees Received a/c  XXX

                             (Professional Fees Receivable from Clients for the period)

We closed the professional fees receivable account when the professional fees is received from clients as it is now earned by the business so it is not shown on balance sheet.