Unearned Revenue Journal Entry Gst

Deferred revenue is typically reported as a current liability on a company s balance sheet as prepayment terms are typically for 12 months or less.

Unearned revenue journal entry gst. From my reading the double entries are 1 credit bank account 2 debit unearned revenue. When the event is happend i can then credit unearned revenue and debit earned revenue. The example being we are selling tickets which include gst for a future event. Credit at the date of invoicing the business has not supplied any services to the customer and the revenue is therefore unearned.

Debit the debit to accounts receivable reflects the amount invoiced and due from the customer under the terms of the contract. What is unearned revenue vs deferred revenue. Unearned revenue journal entry bookkeeping explained. Which one of the xero options should i use for the unearned revenue account.

1 replies only show the best and official replies see this related thread for some options. The following unearned revenue journal entry example provides an understanding of the most common type of situations where such a journal entry account for and how one can record the same as there are many situations where the journal entry for unearned revenue pass it is not possible to provide all the types of examples. Journal entries of unearned revenue.