I have read that deferred revenue is the advance that we have received.
e.g. if we have recd advance in the month of March for the goods that we are going to deliver in June isn't it called deferred revenue ?
so its our liability?
please advise
Rudrayani Shedjale (Assistant Accountant) (751 Points)
28 March 2019I have read that deferred revenue is the advance that we have received.
e.g. if we have recd advance in the month of March for the goods that we are going to deliver in June isn't it called deferred revenue ?
so its our liability?
please advise
Giridhar S Karandikar
(Team Lead)
(7548 Points)
Replied 28 March 2019
Mohit Gupta
(article)
(164 Points)
Replied 28 March 2019
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 28 March 2019
Thanks a lot
Deferred Revenue (current liability) is the advance recd for the services to be rendered in future
Deferred/Prepaid Expense (current asset) is the advance payment for the expenses to be incurred in future
But then if we read deferred revenue expenditure it's the expense which has been covered in an accounting period. Is it different than the first two concepts?
Mohit Gupta
(article)
(164 Points)
Replied 28 March 2019
Rudrayani Shedjale
(Assistant Accountant)
(751 Points)
Replied 28 March 2019
ok.all these concepts comes under M.com syllabus? i am asking as i havn't persuade post graduations.