Postponed appointments - client payments
in Bookkeeping
Hi all - I am probably over thinking this but we have had an instance where a counsellor has had to cancel appointments due to a family bereavement. Now the clients have paid for the sessions in advance, how should these be shown in the accounts? Is it okay to have it in general income or should it be shown separately as it is really client money we are holding?
thanks in advance for any thoughts
Sarah
thanks in advance for any thoughts
Sarah
0
Comments
Once the appointments have taken place I would then transfer these credits to general income. E.g. DR Deferred income and CR General Income
Or if the appointment never happens and the client is refunded to get the credit off the balance sheet I would:
DR Deferred income and CR Bank