Matching concept principle

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Financial Analyst
41 Points Joined March 2015

Hello Everyone,

If you receive the Annual service maintenance of Rs.12000 on 1st Dec 2019 for next period. Suppose your accounting period is 1st April to 31st March. When you will show this revenue as per matching concept principle. Can you please suggest me guys.

 

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On 05 September 2020 at 10:46 Report
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My grammar is 💯 good I
7296 Points Joined March 2019

If you have received it as advance payment for future services, recognise deferred revenue liability, this falls under accruals. Then once the service is provided in the next year, recognise it as revenue. 

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On 05 September 2020 at 14:13
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28028 Points Joined May 2017
Matching concept principle is the basic concept of accountancy.
1. matching concept
matching of revenue with cost.
advance receipt will be adjusted against next year accounts.


pankaj
you do not know this.

you do not know this
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On 18 September 2020 at 09:30


CCI Pro

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