Advisory Fees Received In Advance Journal Entry

Unearned Advisory Fees Journal Entry

When advisory fee received in advance, then it is considered as a Current Liability for the company as still the company does not provide the services against the advisory fees received in advance.

Unearned Advisory Fees Adjusting Entry

                                       Cash a/c / Bank a/c  XXX

 

                                                                              Advisory Fees Received In Advance a/c  XXX

 

                                                                 (Advisory Fees Received In Advance)

When the company actually delivered the services to its clients, then advisory fees received in advance is closed. The following adjusting entry is recorded as shown below:

                                          Advisory Fees Received In Advance a/c  XXX

 

                                                                                                  Advisory Fees Received a/c  XXX

 

                                                                   (Advisory Fees Now Actually Earned)

Advisory Fees Received In Advance Balance Sheet

Advisory fees received in advanced is shown on balance sheet, (a Current Liability), as it is a Balance Sheet Account.

Advisory Fees Received In Advance is also known as Unearned Advisory Fees in accounting.