Asked by Anonymous

"Received $2000 from a client for financial services to be rendered next year."

I am supposed to record the general journal entry for this. Would it be this:

Cash $2000
A/R $2000

or what? This entry is for the last day of the fiscal year, too. Please help me, thanks :)


The credit should be for some kind of unearned income account. The debit is for cash.
Answered by Chris
The entry that I would recommend is:

Cash $2000
Deposits received (liability account) $2000

As the money is used:
Debit deposits received $XXXX
Credit Income account $XXXX
Answered by ajay
started business with capital of rs. 30,000
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