Postponed appointments - client payments

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SBroadhurst
SBroadhurst Registered Posts: 2
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

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  • SBroadhurst
    SBroadhurst Registered Posts: 2
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    The deposits will be applied as an existing payment when the counsellor returns and sees the client for their next appointment.
  • reader
    reader Registered Posts: 1,037 Beyond epic contributor 🧙‍♂️
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    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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