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Rakhi Vasavada
Rakhi Vasavada , Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4418
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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I have received homeowners dues in advance for next years

Resolved Question:

I have received homeowners dues in advance for next year's dues, deposited them, and assigned them to "deferred income". When the new fiscal year arrives, what are the steps I need to take to transfer that amount out of deferred income and pay her invoice for the new year's dues?
Submitted: 4 years ago.
Category: Finance
Expert:  Rakhi Vasavada replied 4 years ago.

Dear Friend,

 

As I understand, the current amount must be showing as Credit balalnce in the "Deferred Income" Account.

 

When the next year comes, you will pass the following adjusting entry to bring it out of that.

 

Deferred Income A/c DR

TO Revenue or Income A/c

 

The following will help or serve as a good guidance for you http://ccba.jsu.edu/accounting/ADJENTRIES.HTML

 

I am sure this would help. Don't hesitate to rever for further clarification or help.

 

Warm Regards,

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