Revenue Received in Advance

Adjustments at the Balance Date and Preparation of Sole Proprietorship Financial Statements

MS: Hasil Terdahulu · EN: Revenue Received in Advance · ZH: 预收收入

Meaning

Revenue received in advance is revenue that has been received in cash but not yet earned, because the service or benefit has not been provided by the balance date. The unearned portion is deducted from revenue in the Income Statement and reported as a current liability. It is also known as unearned revenue.

Example

Sihat Gymnasium receives RM1,200 membership fees for 12 months on 1 December, and the year ends 31 December. Only RM100 is earned this year; RM1,100 is recorded as revenue received in advance (a current liability).

Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4

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