final accounts for service centre

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi there, please if anyone knows the answer for my confusion,if so kindly help me.

If we are preparing final account,we haven't recieved the payment for next three months fees, which is £1500,& we have recieved the advance fees for the next servise, of £500. How we take it to the accounts?

I am doing exam today please if anyone knows the answer help me.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:final accounts for service centre

    I THINK! thank the £1500 is an income accrual which is a debtor type on the balance sheet i.e. current asset (money owed to you) and the income prepayment of £500 is a creditor type in the balance sheet (i.e current liability (something you owe.

    Thats how I understand it anyway - hope its right!

    Alison
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