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
"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.
2 answers
started business with capital of rs. 30,000
1 answer