Received Cash For Admission Fees Journal Entry

The journal entry to record for admission fees received in cash for Rs. 25000 resulted in the debit to Cash Account and the credit to Admission Fees Received Account or Service Revenue Account as shown below:

                                                                    Cash a/c  25000

 

                                                                                      Service Revenue a/c  25000

 

                                                      (Service Revenue Earned For Cash During the Period)

Cash as a current asset is increased, so we debit it while service revenue as a Direct Revenue is also increased, so we credit it.

Received Cash For Admission Fees Accounting Equation

                                                     Assets      =        Liabilities     +               Equity

                                                     +Cash       =                -              +     (+Service Revenue)

                                                     +25000     =                -              +              (+25000)

Both sides of accounting equation remain equal with the addition of Rs. 25000 of Cash and Service Revenue on asset side and liabilities & equity side respectively.