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Module 1: Balance day adjustments

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Study Reminders
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Prepaid revenue

Set your study reminders

We will email you at these times to remind you to study.

  • Monday

    -

    7am

    +

    Tuesday

    -

    7am

    +

    Wednesday

    -

    7am

    +

    Thursday

    -

    7am

    +

    Friday

    -

    7am

    +

    Saturday

    -

    7am

    +

    Sunday

    -

    7am

    +

XSIQ
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Accounting - Prepaid revenue

Prepaid revenue

Revenue may be received in advance (prepaid).

In this example commission of $4000 has been received with $500 prepaid.
The prepaid revenue is a current liability.

DATE
ACCOUNTS
DEBIT
CREDIT

31 Mar.
Commission revenue
500

Prepaid commission revenue

500

Commission revenue owing

31 Mar.
Commission revenue
3 500

Profit and Loss a/c

3 500

Commission revenue posted to Profit and Loss a/c

1 Apr.
Prepaid commission revenue
500

Commission revenue

500

Reversing entry

31 Mar.
Prepaid commission revenue
500
31 Mar.
Bank
4 000

Profit and Loss a/c
3 500

4 000

4 000

1 Apr.
Prepaid commission revenue
500

1 Apr.
Prepaid commission revenue
500
31 Mar.
Prepaid commission revenue
500

31 Mar.
Prepaid commission revenue
500

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