Postponed appointments - client payments

SBroadhurstSBroadhurst Posts: 2Registered
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

Comments

  • SBroadhurstSBroadhurst Posts: 2Registered
    The deposits will be applied as an existing payment when the counsellor returns and sees the client for their next appointment.
  • readerreader Experienced Mentor Posts: 1,039MAAT, AAT Licensed Accountant
    I would show these client payments as payments on account within trade debtors or deferred income, i.e. there would be a credit (CR) on the balance sheet. E.g. DR Bank and CR Deferred Income.

    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

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