Unearned Income / Prepaid Income Accounting Example - Definition And Meaning
What Is Income Received In Advance / Unearned Revenue Journal Entry In Accoun ting You ca n also study about Unearned Income in Accounting with detail that is a Deferred Income for a busi ness. It is also called Prepaid I ncome / Reve nue i n Accou nti ng. Income / Revenue Received In Advance Is Categorized As It is a Current Liability for the company which received income, like fees received in advance from its clients, Commission Received In Advance , etc. but actually does not provide services to them at time of receiving the payment of services. Unearned Revenue In Balance Sheet Unearned Revenue T Account Or Ledger is prepared to record Transactions related to it. The normal bala nce of it is credit. However, whe n we actually re nder the services, the n we debit it a nd it is recorded o n bala nce sheet as a Current Liability on liabilities & equity side during the e nd of accou nti ng period. For Exampl...